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| *Ostroff, Fair and Company>>>Small Business |
What is gross profit? |
What is a gross profit margin? Is this before or after you have paid expences such as wages and rent or after? Thanks Gross profit margin is a financial ratio used to assess the profitability of a firm's core activities, excluding fixed costs. The general calculation is Gross Profit Margin = (revenue - Cost of sales) / (revenue) The gross profit margin is related to the net profit margin, which assesses the profitability of an organisation after including fixed costs. Indicates the relationship between net sales revenue and the cost of goods sold,A high gross profit margin indicates that a business can make a reasonable profit on sales, as long as it keeps overhead costs in control. Source(s): http://en.wikipedia.org/wiki/gross_profi... gross is total sales after those stinking deductions it is NET profit or one dollar - which ever is less - and that becomes your salary its before your great uncle--Sam, pockets some for wars and things like really important useless topsecret stuff gross is before all expences incl.taxes |
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