2007-10-18 23:43:44 · 3 answers · asked by yisellramos 2 in Business & Finance ➔ Taxes ➔ United States
Gross Profit is equal to sales less cost of goods sold. COGS includes the cost to manufacture (or buy) your product, direct G&A, and shipping, if necessary.
2007-10-18 23:49:06 · answer #1 · answered by extra_37 4 · 0⤊ 0⤋
You don't. You add and subtract. You figure Cost of Goods Sold first. That's Beginning Inventory plus Purchases minus Ending Inventory. Then you subtract CGS from Gross Sales to reach Gross Profit.
2007-10-19 09:16:26 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Gross profit is sales revenue less cost of goods sold. So you don't divide, you subtract. The gross profit percentage, or profit margin is gross profit divided by sales revenue. Before you can divide, you have to subtract.
2007-10-19 06:48:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋