If the cost of an item is $40 and it is sold for $60, what is the profit?

To determine the profit made from selling an item, you subtract the cost of the item from the selling price. In this case, the cost of the item is $40, and it is sold for $60.

The formula for calculating profit is:

Profit = Selling Price - Cost Price

Using the values given:

Profit = $60 - $40 = $20

This calculation shows that the profit made when the item is sold for $60 after costing $40 is indeed $20. Therefore, the accurate answer is that the profit equals $20.