Gross profit is also called sales profit or gross income. It refers to the profit you make after deducting the costs. Gross profit usually applies to companies who sell goods by subtracting the cost of manufacturing and all other processes from the sales proceeds. Generally, Gross profit = Revenue or net sales – Cost of providing goods of services. For instance, if the cost of manufacturing and selling a wallet is ₹250 and the revenue from it is ₹600, the gross profit is (600 – 250) ₹350.
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