Gross profit
Gross profit is how much money you made by selling something, minus how much it cost you to make that thing.
Think about if you wanted to sell lemonade. The money you get from selling each cup of lemonade is the revenue. But in order to make the lemonade, you had to buy lemons, sugar, and cups, which are called expenses.
Gross profit is the money you made from selling the lemonade (revenue) minus the money you spent to make it (expenses). If you sold 10 cups of lemonade for $1 each, your revenue would be $10. If you spent $3 buying all the ingredients and cups, your expenses would be $3. Your gross profit would be $7 ($10 minus $3).
So gross profit is a way to see how much money a business makes after all the costs of making or selling something are taken into account.
Think about if you wanted to sell lemonade. The money you get from selling each cup of lemonade is the revenue. But in order to make the lemonade, you had to buy lemons, sugar, and cups, which are called expenses.
Gross profit is the money you made from selling the lemonade (revenue) minus the money you spent to make it (expenses). If you sold 10 cups of lemonade for $1 each, your revenue would be $10. If you spent $3 buying all the ingredients and cups, your expenses would be $3. Your gross profit would be $7 ($10 minus $3).
So gross profit is a way to see how much money a business makes after all the costs of making or selling something are taken into account.
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