Revenue is $1m. Earnings are less than revenue, because you have to pay for salaries & stuff to generate the $1m in revenue. After expenses of ~$750k, the business earned roughly $250k in profit. Thats' real money the owner(s) could put into their personal accounts.
Businesses are typically valued as a multiple of their earnings (in the stock market, this is the P/E ratio). For hardware/e-commerce companies, 2.4x is in the range of fair value.
Again, you multiply by the earnings and not the revenue. That gives you the actual sale price.
Also confused here, the math doesn’t seem to be mathing up