Which of the following defines the profit in a retail context?

In a retail context, profit is specifically defined as the difference between total sales and expenses. This means that profit is calculated by taking the total amount of money generated from sales and subtracting all associated costs, including operational costs, wages, rent, and cost of goods sold. This financial measure is critical for retailers, as it indicates the success of their business model and overall financial health.

Total revenue simply refers to the total amount of money received from sales before any deductions, while the cost of goods sold represents the direct costs attributable to the production of the goods sold by a business. The retail price is the amount customers pay for a product, but without accounting for expenses, it does not reflect profit. Therefore, option B accurately captures the essence of how profit is calculated within the retail industry by considering both income (total sales) and outgoings (expenses).