Question:
What is Gross Sales, and why is it important?
Answer:
The formula to calculate gross sales is Total Units Sold x Original Sale Price = Gross Sales. A company’s gross sales are the total sales of all its products and services over a period of time. Known as top-line sales, the number represents a business’s total revenue without deductions, returns, or allowances.
Gross Sales can be calculated using the formula:
Gross Sales = Total Sales – Discounts – Returns.