How to Calculate Gross Profit

http://www.entrepreneur.com/article/226158#

 

One of the most important financial concepts you will need to learn in running your new business is the computation of gross profit. And the tool that you use to maintain gross profit is markup.
The gross profit on a product is computed as:
Sales - Cost of Goods Sold = Gross Profit
To understand gross profit, it is important to know the distinction between variable and fixed costs.
 

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