Business Profits

GROSS PROFIT:

- difference between revenue and cost of sales (revenue = price x quant. of sales)

- the cost of sales are direct cost of the business

- GP is the profit made by a business after direct costs are met

Gross Profit = Sales Revenue - Cost of Sales

GROSS PROFIT MARGIN:

- compares gross profit achieved by a business with its sales turnover

- earned before direct costs are deducted

- answer expressed in %

Gross Profit…