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net contribution is contribution from customers while net profit is from all expenses deducted

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Q: What is the difference between net contribution to net profit?
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What called The difference between net sales and cost of goods sold divided by net sales?

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Contribution margin format?

Contribution Margin = Sales - Variable Cost Sales Less:Variable Cost Contribution Margin Less:Fixed Cost Net profit(Loss)


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Gross profit is the total amount of money that you get. And net profit is the amount left after you subtract your costs. For example, if you sold a toy on Ebay for 100.oo dollars. Your gross profit would be 100. You spent 30 dollars on the items and 6 dollars to list on ebay. subtract your expenses from you gross profit and then that is your NET Profit.


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What is the difference between a net profit and a net sale?

Well net profit is the profit that you get after paying all your taxes, and after all the expenditure of the year!!! But net sale is the actual sale - Sales returns. For eg., lets say you sold goods for rs.5000 and goods amounting to 1000 were returned. So here rs.5000 was revenue and 1000 is sales returns. So net sale is 5000-1000=4000. Now consider, you have carried on some repairs in office or whatever that cost you 2000, so your net profit will be 4000-2000=2000 So, this is the main difference b/w net profit and net sales.