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It is impossible for net profit to be greater than gross profit. Gross profit is the income made before any expenses. Net profit is less once all expenses have been deducted.
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Explain how a business can earn a positive gross profit on its sales and still have a net loss?
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.
If expenses are greater than income there is no what?
There is no profit.
Is net loss is greater than gross loss?
No
What occurs when revenue is greater than expenses?
profit
Is gross profit greater than net income?
Most probably, yes. Gross Profit is the gain made solely from trading activities: the difference between the revenue received from sales and how much their cost of purchase/production was. Net Profit, however, will take into account other incomes (such as rent from sub-let premises, profit from disposal and decrease in provision for doubtful debts) and expenses (both cash and non-cash such as rent and depreciation, respectively). Now, it is possible that these other sources of income are more than the expenses incurred in the running of the business, which will lead to net profit being higher than gross profit but it is most unlikely as nearly all, if not all, businesses' expenses exceed other sources of income!
How do you calculate GP Gross Profit when the revenue is less than the costs?
If revenue is less than costs, the gross profit is negative -- it is not a profitable company.
Gross profit and net profit?
Gross and Net profit are virtually the same. They both calculate EBT, earnings before taxes - all overhead and salaries.
How companies make profits?
Companies make a profit when their gross income is greater than their expenses. Expenses can include renting equipment and paying employees.
Explain how a business can earn a positive gross profit on its sales and still have a net loss?
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.
If average profit increases with output marginal profit must be?
greater than average profit.
If expenses are greater than income there is no what?
There is no profit.
Is net loss is greater than gross loss?
No
What occurs when revenue is greater than expenses?
profit
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.
What is considered a small profit margin?
Well, if you making less than 5% of the gross sales as your profit after all expenses, then you have small profit margins.
Is gross profit greater than net income?
Most probably, yes. Gross Profit is the gain made solely from trading activities: the difference between the revenue received from sales and how much their cost of purchase/production was. Net Profit, however, will take into account other incomes (such as rent from sub-let premises, profit from disposal and decrease in provision for doubtful debts) and expenses (both cash and non-cash such as rent and depreciation, respectively). Now, it is possible that these other sources of income are more than the expenses incurred in the running of the business, which will lead to net profit being higher than gross profit but it is most unlikely as nearly all, if not all, businesses' expenses exceed other sources of income!
What is the primary reason that Adidas's Gross Profit margin was higher than Nike's?
acx
