What Is the Importance of Profit Margin?

The balance of commercial enterprise's commodity sales income (sale price) minus the original purchase price of the commodity. The symmetry of net profit, also known as the difference between the purchase and sale of goods. Because it has not deducted the circulation cost of goods and taxes, it is not net profit, so it is called gross profit. In China, the difference between the purchase and sale of industrial products refers to the difference between the ex-factory price and the wholesale price of the same product (the difference between the wholesale price and the retail price is called the batch zero difference). The difference between the origin purchase price and the origin wholesale or retail price.

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Commodity circulation company calculation formula: gross profit = sales price without tax-purchase price without tax

The calculation formula for manufacturing enterprises: gross profit = product sales revenue (excluding tax)-actual cost at the time of sales of the corresponding product (that is, the cost of the main business in the financial statements)