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sales minus cost of sales; also called gross margin.
net sales less the cost of goods sold . Also called gross margin.
See also net profitdifference between revenue (sales) and the cost of goods sold. For example, XYZ Company sold through a newspaper advertisement 120 belts that cost XYZ $10 each. XYZ sold each belt for $18. The gross profit is calculated as follows:
| (sales) | 120 × $18 = | $2,160 |
| (cost of sales) | 120 × $10 = | $1,200 |
| Gross profit | $ 960 |
The gross profit as a percentage of revenue is termed the gross profit margin. Gross profit is different from net profit , which is gross profit net of other income or expenses, interest expense, and taxes.
difference between revenue (sales) and the cost of goods sold. For example, XYZ Company sold through a newspaper advertisement 120 belts that cost XYZ $10 each. XYZ sold each belt for $18. The gross profit is calculated as follows:
| 120×$18 | = | $2160 |
| 120×$10 | = | $1200 |
| Gross profit | $ 960 |
The gross profit as a percentage of revenue is termed the gross profit margin. Gross profit is different from net profit , which is gross profit net of other income or expenses, interest expense, and taxes.
See also average profit marginCopyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
