Zoho Bookings & SalesIQ Alignment

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Gross Profit

Meaning: 

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


Example:

If a toy company sells toys for ₹1,000 and it costs them ₹600 to make those toys,  their gross profit is ₹400.


How to understand Gross Profit:

Gross profit helps show how much money a company makes from its main products.
It helps businesses decide how to set prices for their goods.


Importance of Gross Profit:   

Gross profit shows how efficiently a company is operating and helps in planning for the future.




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