Gross Profit Formula

Gross profit is the total revenue minus cost of things sold. It is the company’s profit before all interest and tax payments. Gross profit is also called gross margin.  Find below the formula to calculate the gross profit of a company.

Gross Profit Formula

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Find the formula for gross formula,

Examples of Gross Profit

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Some solved examples of gross profit are given below,

Solved Examples

Question 1:

If the cost of a fan is 5.30 dollar and sold at 7.90 dollar. Find the gross profit?

Solution:

Given Revenue = $5.30 Selling price =$7.90
Gross Profit  = Selling price – Revenue
Gross Profit  = 7.90 – 5.30
Gross Profit  = $2.6 Question 2: If the cost of a toy is 6.70 dollar and sold at 10.00 dollar. Find the gross profit? Solution: Given Revenue =$6.70
Selling price = $10 Gross Profit = 10 – 6.70 Gross Profit = 7.90 – 5.30 Gross Profit =$3.3
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