The money left over after expenses directly related to the sale and production of the job, such as labor, materials, and sales commission (Cost of Goods Sold or COGS), are subtracted. Gross Profit is also referred to as “Gross Margin” and is commonly abbreviated as “GP”.
EXAMPLE: A typical luxury car makes a Gross Profit of around 15-20 percent of its sale price, while compact cars make only about 5 percent.
