Let’s say that you own a lemonade stand, and that you sell lemonade for $3 each. Today, you have 18 customers ordering lemonade. If you multiply 18 by $3, you get $54. You use $35 to order a new lemonade stand. You still have $19 left, so your profit for the day is $19.
The next day, you have 11 customers. Multiply 11 by $3 and you get $33. Using some of your remaining $19, you purchase 5 one-gallon lemonade bottles for $45. You spent all of your money that you earned today, so you have a loss.
