I have a question?

[Guest125474]

Can you please, help me out in this.


Can you help me understand about profit and net profit?

I am new , so I want to make whatever I start I do things profitably.

 

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[wade1mil]

Profit (or gross profit) is the amount of money you make on a sale (revenue) minus the cost to make the thing you sold (cost of goods sold, COGS).

Net profit is the amount of money you make on a sale (revenue) minus the cost to make the thing you sold (cost of goods sold, COGS) and all other expenses needed to sell thing (labor, utilities, etc).

You sell 1,000 pillows for $50 each ($50,000 revenue)
You spend $10 to make each pillow ($10,000 COGS)
Your gross profit is $40,000 ($50,000-$10,000)

Other expenses cost you $15,000
Your net profit is $25,000 ($40,000-$15,000)

 

[Guest125474]

Profit (or gross profit) is the amount of money you make on a sale (revenue) minus the cost to make the thing you sold (cost of goods sold, COGS).

Net profit is the amount of money you make on a sale (revenue) minus the cost to make the thing you sold (cost of goods sold, COGS) and all other expenses needed to sell thing (labor, utilities, etc).

You sell 1,000 pillows for $50 each ($50,000 revenue)
You spend $10 to make each pillow ($10,000 COGS)
Your gross profit is $40,000 ($50,000-$10,000)

Other expenses cost you $15,000
Your net profit is $25,000 ($40,000-$15,000)

Thank you so much.... Brother.


Now I absolutely clear now.