温馨提示：本站仅提供公开网络链接索引服务，不存储、不篡改任何第三方内容，所有内容版权归原作者所有
AI智能索引来源：http://www.edu.com/math-glossary/Gross-Profit-Formula-Definition-Examples
点击访问原文链接

Gross Profit Formula: Definition and Example | EDU.COM

进入原网站 导航首页
Gross Profit Formula: Definition and Example | EDU.COMEDU.COMResourcesBlogGuidePodcastPlanBackHomesvg]:size-3.5">Math Glossarysvg]:size-3.5">Gross Profit FormulaGross Profit Formula: Definition and ExampleTable of ContentsDefinition of Gross Profit Formula

Gross profit is a financial metric that measures a company's profitability by calculating the difference between total revenue and the cost of goods sold (COGS). Total revenue represents the entire amount of money generated from sales or services during a specific period, without any deductions. Cost of Goods Sold (COGS) encompasses all direct costs associated with producing or acquiring the goods that were sold, including raw materials, direct labor costs, and manufacturing overhead.

Gross profit margin is a related financial metric that expresses gross profit as a percentage of total revenue. This percentage indicates how efficiently a company manages its production costs and how much profit is generated from each dollar of revenue. A higher gross profit margin suggests effective cost management, while a lower margin may indicate production cost challenges or pricing issues. Gross profit serves as a key tool for management to monitor efficiency, make pricing decisions, and optimize the production process.

Examples of Gross Profit Formula Calculations Example 1: Basic Gross Profit Calculation Problem:

ABC Company had total revenue of $800,000 in 2020 and a cost of goods sold (COGS) of $400,000. Calculate the gross profit.

Step-by-step solution:

Step 1, Identify the key values from the problem:

Total revenue = $800,000 Cost of goods sold (COGS) = $400,000

Step 2, Recall the gross profit formula:

Gross Profit = Total Revenue - COGS

Step 3, Substitute the values into the formula:

Gross Profit = $800,000 - $400,000

Step 4, Calculate the result:

Gross Profit = $400,000 Therefore, the gross profit of ABC Company is $400,000. Example 2: Calculating Gross Profit Margin Problem:

XYZ Corporation generated a gross profit of $120,000 with a total revenue of $500,000. Find the gross profit margin.

Step-by-step solution:

Step 1, Identify the key values:

Gross Profit = $120,000 Total Revenue = $500,000

Step 2, Recall the formula for gross profit margin:

Gross Profit Margin = (Gross ProfitTotal Revenue)×(\frac{\text{Gross Profit}}{\text{Total Revenue}}) \times(Total RevenueGross Profit​)× 100

Step 3, Substitute the values into the formula:

Gross Profit Margin = ($120,000$500,000)×(\frac{\$120,000}{\$500,000}) \times($500,000$120,000​)× 100

Step 4, Simplify the fraction:

Gross Profit Margin = (1250)×(\frac{12}{50}) \times(5012​)× 100 Gross Profit Margin = 0.24 ×\times× 100

Step 5, Express the result as a percentage:

Gross Profit Margin = 24% Therefore, XYZ Corporation's gross profit margin is 24%. Example 3: Finding Gross Profit from Revenue and Margin Problem:

A retail store's total revenue is $800,000, and the gross profit margin is 40%. Determine the gross profit.

Step-by-step solution:

Step 1, Understand what we know:

Total revenue = $800,000 Gross profit margin = 40% (or 0.40 in decimal form)

Step 2, Recall the relationship between gross profit margin and gross profit:

Gross Profit Margin = (Gross ProfitTotal Revenue)×(\frac{\text{Gross Profit}}{\text{Total Revenue}}) \times(Total RevenueGross Profit​)× 100

Step 3, Rearrange this formula to solve for gross profit:

Gross Profit = Gross Profit Margin × Total Revenue

Step 4, Substitute the values and calculate:

Gross Profit = 0.40 ×\times× $800,000 Gross Profit = $320,000 Therefore, the retail store's gross profit is $320,000. Comments(7)DDesignerMonaNovember 5, 2025This gross profit formula glossary page is great! It's helped my students grasp the concept easily. Thanks for the clear examples!

NNatureLover25September 17, 2025This definition and examples really helped my kids understand the Gross Profit Formula for their school project. It's so clear and easy to follow—I’ve bookmarked it for future lessons!

MCMs. CarterSeptember 10, 2025I used the Gross Profit Formula examples from this page to help my teen understand business math for her school project. The clear breakdown of COGS and revenue made it so much easier for her to grasp. Great resource!

MCMs. CarterAugust 27, 2025I used the Gross Profit Formula examples to help my teen with their business studies homework—it made the concept so much clearer! It’s great having such an easy breakdown of COGS and revenue. Thanks for this resource!

BBookLover85August 20, 2025I used the Gross Profit Formula examples to explain business math to my teen, and it clicked for them! It’s such a clear breakdown—perfect for helping kids grasp profitability concepts.

svg]:px-3 dk:w-auto h-10 dk:h-14 rounded-lg dk:rounded-[15px] px-5 dk:px-7.5 text-sm dk:text-xl text-[#3467FF] bg-white hover:bg-white">Load MoreExplore More TermsExperimentArithmeticConsecutive NumbersInequalityRowArea and Perimeter of TriangleView All Math TermsRecommended Interactive LessonsConvert four-digit numbers between different forms3Math3.NBT.AWrite Division Equations for Arrays3Math3.OA.A.2Identify Patterns in the Multiplication Table3Math3.OA.D.9Round Numbers to the Nearest Hundred with the Rules3Math3.NBT.A.1Compare Same Denominator Fractions Using Pizza Models3Math3.NF.A.3dDivide by 63Math3.OA.C.7View All Interactive LessonsRecommended VideosTell Time To The Half Hour: Analog and Digital Clock1Math1.MD.B.3Use The Standard Algorithm To Subtract Within 1002Math2.NBT.B.5Read And Make Line Plots2Math2.MD.D.9Addition and Subtraction Patterns3Math3.OA.D.9Graph and Interpret Data In The Coordinate Plane5Math5.G.A.2Word problems: addition and subtraction of decimals5Math5.NBT.B.7View All VideosRecommended WorksheetsCompare HeightKMathK.MD.A.1, K.MD.A.2Count by Tens and OnesKMathK.CC.A.1. K.CC.A.2.Understand Equal Parts1Math1.G.A.3Odd And Even Numbers2Math2.OA.C.3Classify Triangles by Angles4Math4.G.A.2Add Fractions With Like Denominators4Math4.NF.B.3aView All WorksheetsRecommended Coloring PagesJupiter with the Great Red Spot prominent and a moon nearbyPre-K – KAll SubjectsCycling helmet with basic star patterns on itPre-K – KAll SubjectsStratus cloud with a rainbow emerging from it1 – 2All SubjectsStarfish in a detailed underwater scene with a treasure chest, fish, and sea plants5 – 6All SubjectsElephant family near a watering hole with other animals like zebras and giraffes5 – 6All SubjectsMinivan parked at a beach with detailed waves and sand5 – 6All SubjectsView All Coloring PagesRecommended BlogsTeaching Kanji Stroke Order: A Foundation for Young LearnersNovember 13, 2025Best Reading for Beginners: Building Strong FoundationsNovember 12, 2025What Is Structured Literacy? A Complete Guide for K-6 Teachers and ParentsNovember 9, 2025Simple Thesis Statement Examples for Elementary WritersOctober 14, 2025The Science of Reading: Evidence-Based Strategies for K-6 SuccessSeptember 22, 2025Reading for Beginners: A Data-Driven Guide to Building Strong Literary FoundationsSeptember 17, 2025View All Blog PostsQUICK LINKSAbout UsPrivacy PolicyTerms of ServiceTOOLSHomework HelperGuide DesignerPodcast MakerPlan BuilderRESOURCESMath GlossaryEnglish GlossaryEnglish Language ArtsMathematicsScienceBook InsightsFun with WordsBlog© 2025 EDU.COM. All rights reserved.

智能索引记录