Zoho Bookings & SalesIQ Alignment

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Gross Profit

Meaning: 

Gross Profit is defined as the profit a business earns after subtracting the cost of producing or purchasing goods. It indicates how efficiently a company is making and selling its products.


Example:
For instance, if a company sells a product for ₹2,000 and the cost to produce it is  ₹1,200, the gross profit would be ₹800.

How to understand Gross Profit:

Gross profit reveals how much money the company earns from its main product before considering other expenses. 
It helps businesses assess their pricing strength and control costs.

Importance of Gross Profit:   
Gross profit is useful for planning sales targets and forecasting future profits.






 

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