How to Calculate a Company's Total Weekly Gross Profit
A company’s gross profit is somewhat related to a person’s gross income in that it’s the total money a company earns before factoring in taxes. Unlike personal gross income, a company’s gross profit is found after calculating the total cost to produce goods and services and factoring that figure into the total revenue. Companies that keep constant track of their weekly gross profit can take steps to improve sales should their profit dwindle for consecutive weeks.
Other People Are Reading
Instructions
-
-
1
Determine the total revenue for the given week. Revenue is the total money earned from selling a product or service and does not take into account any expenses whatsoever. Take into account revenue from the given week only, regardless of the situation. For example, if you’re forced to close on a Monday, count the revenue earned from Tuesday through Sunday. You cannot replace Monday’s lost revenue by adding revenue earned from the following Monday.
-
2
Calculate the total money it cost to produce each product or service that was sold in the given week. Factor in only expenses that directly relate to the production of the product or service. Do not factor in taxes. Expenses include cost of wages for employees who had a part producing the product or service, cost of materials to create the product or service and the cost to ship the product or service.
-
-
3
Subtract your given weekly revenue by the money it cost to product each sold product or service from the same week. The number you find represents your company’s total weekly gross profit.
-
1
