Answer:
Gross Profit is the total revenue amount that a company earns before deducting the expenses connected with that revenue. To calculate Gross Profit, you should know the total amount of Net Sales and the total amount of Cost of Goods Sold. The formula of Gross Profit is Gross Profit = Net Sales – Cost of Goods Sold. If the Net Sales is not calculated, then you can formulate the amount of Net Sales. Net Sales = Gross Sales – Sales Returns and Allowances – Sales Discounts. Cost of Goods Sold is the carrying value of goods sold and does not include overhead costs, payroll, taxation, and interest payments.
Step-by-step explanation:
