Gross Profit Formula

Gross profit formula 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

Find the formula for gross formula,

Gross Profit Formula

Example Questions Related to Gross Profit Formula

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 dollars. Find the gross profit?

Solution:

Given Revenue = $5.30

Selling price = $7.90

Gross Profit = Revenue – Cost of Goods

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


Practise This Question

A moving coil galvanometer is converted into an ammeter reading upto 0.03 A by connecting a shunt of resistance 4r across it and into an ammeter reading upto 0.06 A when a shunt of resistance r connected across it. What is the maximum current which can be sent through this galvanometer if no shunt is used.