When cost is deducted from the total
revenue we get our Gross Profit. For example, the cost to make 100 pieces of
pork dim sum is $20, (includes pork meat and other ingredients plus labor) sold
all those 100 pieces for a total revenue of $40. Our gross profit from the sale
is $20.
REVENUE FROM DIM SUM = $40
MINUS COST TO MAKE DIM SUM = $20
GROSS PROFIT
= $2