Final answer:
Sales revenue less cost of goods sold is called Gross Profit, which is different from Net Profit, Net Income, and Marginal income.
Step-by-step explanation:
Sales revenue less cost of goods sold is called Gross Profit. It's the calculation used to determine the financial health of a company regarding the money it makes from its core business activities. Total revenue is the income a firm generates from selling its products, calculated by multiplying the price of the product times the quantity of output sold. When you subtract the cost of goods sold (COGS), the resultant figure is your gross profit.
Here's a simple formula for better understanding:
Total Revenue = Price x Quantity
Gross Profit = Total Revenue - Cost of Goods Sold
It's noteworthy that Net Profit and Net Income include deductions for all expenses, taxes, and additional income streams and thus are not the same as gross profit. Marginal income refers to the additional profit gained from selling one more unit and is also not equivalent to gross profit.