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One fоrmulа fоr the cаlculаtiоn of gross profit is sales revenue – cost of goods sold. Batool owns a company that sells $14,500 in widgets that cost $10 per widget. The widgets cost $5 to manufacture and $1 to ship his store where she sells them. Her gross profit is... Below are some of the costs in COGS: Direct materials Direct labor Equipment costs involved in the production Utilities for the production facility Shipping costs