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Most businesses exist to make money and being able to calculate and interpret the net profit and gross profit margins of a business is key to measuring a businessamp;#39;s performance, so letamp;#39;s take a look at how to do this. One of the most important financial concepts in business is gross profit, this is a difference between sales revenue and the cost of goods sold, it is calculated by subtracting the cost of goods sold from sales revenue. Effectively itamp;#39;s the profit a business makes after deducting the costs which are associated with making and selling its products or the cost associated with providing its services. The cost of goods sold refers to the direct costs of producing the goods sold by the business which includes the cost of materials and the labor which is used to create the goods. However, itamp;#39;s important to note that the gross profit only includes variable costs to assess the businessamp;#39;s efficiency in using its labor and materials when prod
