Legal Definitions - gross profit

Gross profit is the money a business makes from selling goods or services, minus the cost of making or providing them. This calculation does not include any additional expenses or taxes. It is different from net profit, which takes into account all expenses.

For example, if a company sells $10,000 worth of products and it cost $6,000 to make them, the gross profit would be $4,000. This does not include any other expenses, such as rent or salaries.

Gross profit is important because it shows how much money a business is making from its core operations. It can help a company determine if it needs to adjust its pricing or production costs to increase profits.