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StellarScott
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Hi Bennos

GP (Gross Profit) = Sales – COGS = 11,500 or 75% of sales

You need to compare this to industry averages to decide if its sustainable. As well as whether such a high GP might mean more competition.

Where are the other operating expenses … eg telephone, maintenance etc

They may be minor on individual basis but need to be accounted for.

Don’t forget to look at the customer and supplier base. Do they rely on a small number of customers or suppliers. I have actually with such a high GP with one customer. Was great business while that customer asleep at the wheel …