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what is the difference between gross profit and net profit?
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Answer Posted / safayat
Hi Im Safayat. Gross profit is calculated by subtracting the
cost of goods sold from net sales. (Net sales - Cost of
goods sold = Gross profit) And Net profit is calculated by:
{Gross profit - Operating expenses (General+Marketing)+ Non
operating income - Non operating expenses } = Net Profit.
Now u know the difference.
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