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Explain how a business can earn a positive gross profit on its sales and still have a net loss?
Wiki User
∙ 9y ago
A business can earn a positive gross profit on its sales and still have a net loss. The gross profit is simply the sales minus cost of goods sold. If the gross profit is less than expenditure, it will result into a net loss.
Wiki User
∙ 9y ago
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Can a business earn a positive gross profit on its sales and still have a net loss?
Yes, a business can have a net loss even though they have a positive gross profit from sales. Expenses like rent, utilities, etc. have to be figured in, too.
Positive operating income will result if gross profit exceeds?
Positive Operating income will result if gross profit exceeds operating expenses
What is the difference of gross profit and gross margin?
Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses
What is the difference between Gross Revenue and Gross Profit?
Gross revenue is the total sales/income from the primary business activity. Gross profit is Net Sales minus Cost of Goods Sold. Look at a multiple-step income statement for clarification.
What is the difference between gross margin and profit margin?
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
Can a business earn a positive gross profit on its sales and still have a net loss?
Yes, a business can have a net loss even though they have a positive gross profit from sales. Expenses like rent, utilities, etc. have to be figured in, too.
Positive operating income will result if gross profit exceeds?
Positive Operating income will result if gross profit exceeds operating expenses
Can a business make a profit if its revenue declines?
Yes. Usually when people say revenue, they mean gross earnings, and since a profit is generally considered a positive number (gross earnings - costs). As long as gross earnings are great than costs, a profit is still made.
How can the gross profit be positive while the net profit is negative?
not sure
What is the business name for profit?
Gross income
What does the GOP in hotel business stands for?
gross operating profit
How do you calculate net profit margin if there is net loss?
The Gross Profit Margin = Gross Profit/Revenue*100 regardless of weather the Gross Profit is positive or negative (a loss). Therefor, it is acceptable to have a negative Gross Profit Margin.
Is gross profit is the amount that the owners of a business get to keep as profit?
Gross profit is the amount left over after all expenses have been paid. The owner or owners or share holders do get to keep that money but, part of it and probably most of it will be put back into the business to help the business grow.
How do you increase gross profit?
You increase gross profit by by either increasing your sales or reducing the cost of goods sold.
What is the difference of gross profit and gross margin?
Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses
What is the difference between gross profit and profit?
for this answer, I have used "ULTIMATE BOOK OF ACCOUNTANCY"Ans : Gross Profit is Total Profit earned by a business.... whereas profit means net profit,it means .. Gross Profit - Indirect expenses + indirect incomes = profit or net profitFor more detail .. please see... "ULTIMATE BOOK OF ACCOUNTANCY" published by vishvas publications....
What is it important for business manager to know the size of a gross and loss profit of a business?
It is important to know the size of a gross and loss profit for a business, because this is the only way to set a budget. It is important in making sure that goals are met throughout the year as well.
