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Gross profit is net sales minus the cost of goods sold. It reveals the amount that a business earns from the sale of its goods and services before the application of additional selling and administrative expenses.
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Gross profit is the profit a company makes after deducting the costs associated with making and selling its products.You can calculate the gross profit by subtracting the cost of goods sold (COGS) from the revenue.  This measure can be used to check how efficiently you produce revenue.