Let's look a little bit more in detail into our yogurt example.

As you might recall, we had the following prices over a five-month time period.

All of them are shown in euros.

So, you see in the first month,

it was 65 cents,

then 78, 74, 69, and 82 cents.

We were also given sales volumes.

As you might recall, this data was given in millions.

So, in the first month, we would be selling at a price of 65 cents, 16.5 million units.

In the second month,

it would be at a price of 78 cents,

13.4 million units, and so forth, and so forth.

As you might recall, we then had information about what would be the resulting revenue,

what would be the resulting cost, and obviously, profitability.

In the first stage,

what we're going to do is we're going to quickly calculate again the revenues.

So, it is very straightforward.

Essentially, in order to calculate the revenues,

what we simply have to do is we take the price per unit,

and we take obviously as well,

the units that we are expecting to sell,

and we'll just simply multiply these two.

So essentially, what we're going to do is we multiply

16.5 million units times the 65 cents,

which is going to be a resulting revenue of

10.725 million.

Let's do yet another example for the second month.

Here again, we're going to do exactly the same,

13.4 million units, which we multiply times the 78 cents of that respective month,

and the resulting overall revenue is going

to be 10,452,000 euros.

We could continue doing this exactly just the same way as well for the third,

fourth, and fifth months.

We're going to skip that for the time being.

What we then did is we try to calculate as well the overall cost.

Here, we obviously have to take into consideration that in the case it was given,

that the cost of production per unit was 30 cents.

That actually means that we now are going to have to multiply

the overall volume output or the overall units that we're expecting.

So, for the first month, 16.5 million units times the 30 cents,

which in this particular case would result in a total cost of 4.95 million.

Let's actually do exactly the same as well for the second month in

order to complete this calculation for this month as well.

Here, we had a total output of 13.4 million units multiplied,

times the 30 cents,

which is a resulting cost of 4,020,000.

This explains how we calculated the costs,

and as I said before, as with revenues we could continue

doing exactly the same as well for the remaining month.

Let's actually now calculate the profits.

In this particular case,

we're only interested in deducting or

subtracting from the 10,725,000 euros in revenues.

We're trying to deduct the cost of 4.95 million euros in cost,

and the resulting profit is going to be 5,775,000 euros.

Let's exactly do the same as well for the second month.

We have now a total revenue, as you see,

of 10.452 million euros and cost of 4.02 million.

The resulting profit is going to be,

in this particular case,

is going to be 6,432,000.

Again, we could do exactly the same as well for the remaining three months.

So as we said as well, when we look only at revenues,

what we actually would find is that in the very fourth month at a price of 65 cents,

we would actually maximize our total revenues.

We actually found that the revenues would be maximized at 10,725,000 euros.

Obviously, the profit was slightly different.

Here, as you might recall,

we actually would find that our profits would be maximized at 6,432,000 euros,

which was actually at a price of 78 cents.