this was for £30,000. Next we look at the cost of goods sold. This again comes from the delivery record in the ‘what they cost?’ column, in this case £10,000. So we have made £20,000. Next comes our costs. These are found down the right-hand side of Figure 2.11 and are: recruit staff £3,000, promotion £1,000, rent £4,000, and staff wages £4,000, making a total of £12,000. So, we have made an operating profi t – profi t before interest and tax: PBIT (in the UK); or earnings before interest and tax: EBIT (in the US) – of £8,000.