Gross Profit

Gross Profit is sales revenue deducted by the cost of goods sold. Gross profit is part of the Fundamental Marketing Process. If you follow this process, you can see that deliveries generate revenue and if you deduct cost of goods sold from revenue you get gross profit.

So, gross profit is a metric that shows you the profit of marketing investment before taking into account the actual marketing investment. With gross profit and sales revenue you can calculate gross margin.

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