Definition of Gross profit:
The difference between the cost of the product and the product produced from the product or service sold. Sometimes expressed as a percentage.
Gross profit is also known as profit from sales or gross revenue.
Gross profit is the profit that a company makes after deducting the costs associated with the manufacture and sale of its products or the costs associated with providing its services. Gross profit is reported in the company's earnings statement and can be calculated by deducting the cost of sales (COGS) from sales (revenue). You can find these numbers in the company's earnings statement.
How to use Gross profit in a sentence?
- Gross profit, also called gross revenue, is calculated by subtracting revenue from the value of the goods sold.
- The dealer makes more profit, but when the price of the car falls out of the equation, the rest of the net profit is less affected.
- Gross margin includes only variable costs and does not include fixed costs.
- When we list our products, we charge double our sales price, which we charge to achieve a satisfactory gross profit on the product, so that our sales team can negotiate.
- In order to be a successful company, we need to look at the overall profitability if we implement the strategies we have recently considered.
- Gross profit measures a company's ability to use labor and supply to produce goods or services.
Meaning of Gross profit & Gross profit Definition