Therefore, the company’s gross sales figure for that quarter would be $5,190.

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For example, if a cybersecurity company sold three different types of alarm systems at $35, $60, and $110 each, and 54, 33, and 12 units, respectively, your calculation would look like this:

Alarm system 1: 54 units x $35 = $1,890
Alarm system 2: 33 units x $60 = $1,980
Alarm system 3: 12 units x $110 = $1,320
$1,890 + $1,980 + $1,320 = $5,190

What is net sales?
Net sales is the remaining sales revenue after things to know before starting telemarketing in bahamas subtracting deductions from your gross sales figure. There are three types of deductions to subtract from gross sales to get to your net sales amount, and they are:

Allowances: A reduction in price related to a product or service issue.
Discounts: Special pricing based on criteria determined by the company.
Returns: Reimbursements and costs related to product returns.
This is the metric accountants include in the company’s income statements and sales managers add to their reports. It’s a valued metric because your net sales figure illustrates your organization’s gross sales profit, giving you insight into your business’s financial health.

Net sales vs. net revenue
Although some think that net revenue is also another name for net sales, they are mistaken.

So, what’s the difference between net sales and net revenue? It’s simple, really. While net sales is your total sales revenue minus deductions, net revenue is a company’s total revenue less its deductions.

In other words, net revenue includes all income received by the company, including sales, investments, interest, and dividends. In contrast, net sales focuses purely on the revenue generated by sales of your products and services.