Question about net profit and profit?

Question

I know the gross profit is the largest amount but is the profit higher than the net profit?

My figures at the moment are (im not sure if they are right)

Gross profit = £406.1m

Net Profit = £25.8m

Profit = £34.3m

Im not sure if the profit should be higher than the net profit?

Answer 1

Gross profit is Sales minus Cost of goods sold. Noone uses the term profit alone. It's either profit from operations, profit from discontinued operations, profit before taxes or profit after taxes. The term used should be self-explanatory. Otherwise the accountant should be shot.

Answer 2

I'm not an expert...but

Gross profit is what your company brings in before expenses- A company's total sales revenue minus its cost of goods sold.

Net profit is what is left after all expenses are paid. The amount of money earned after all expenses, including overhead, employee salaries, manufacturing costs, and advertising costs, have been deducted from the total revenue.salaries, advertising etc.

Profit is what you get to keep. In other words, profit is the money a business makes after accounting for all the expenses. Profit is the goal of every company.  I thought it was the same as net income: total earnings less expenses.

I dont think your profit could be higher than the Net though, since I think it is the same thing, is it possible this is a trick question from you teacher?