Question

How gross profit or loss is calculated​

Answer 1

Answer: See explanation

Explanation:

The Gross Profit for a company simply refers to the income that a particular company has left after the company has paid it's direct expenses that was incurred during production.

The formula to calculate the gross profit is:

Gross Profit = Revenue – Cost of Goods Sold.

In a case whereby the cos of goods sold is more than the revenue, we will get a gross loss.