Gross profit is where impressive sales numbers go to get embarrassed.
A business can sell KES 1 million in a month and still discover that most of that money was never really available to run the business.
Why?
Because the products had to be bought.
The service had to be delivered.
The ingredients had to be used.
The subcontractor had to be paid.
The infrastructure had to support the customer.
Revenue tells you what the business generated.
Gross profit tells you what remained after the direct cost of generating those sales was taken out.
That is the first place the economics of a sale start becoming visible.
What is gross profit?
Gross profit is the amount left after subtracting the direct cost of the goods or services sold from revenue.
For a product business:
Gross Profit = Revenue − Cost of Goods Sold (COGS)
For a service or digital business, the equivalent direct cost may be described as:
- cost of sales
- cost of services
- cost of revenue
- direct costs
depending on the business model and accounting policy.
Simple example
Suppose a retailer earns:
KES 800,000 in revenue
The inventory sold cost:
KES 500,000
Gross profit is:
KES 800,000 − KES 500,000 = KES 300,000
That KES 300,000 still has work to do.
It may need to cover:
- salaries
- rent
- marketing
- software
- administration
- utilities
- professional fees
- financing costs
- tax
- other operating expenses
So gross profit is not the same as net profit.
Belvara view: Revenue tells you what the customer paid. Gross profit tells you how much room the sale created for the rest of the business.
What is the gross profit formula?
The basic formula is:
Gross Profit = Revenue − Cost of Goods Sold
Or, for businesses that use broader terminology:
Gross Profit = Revenue − Direct Cost of Revenue
Example
A business has:
- Revenue: KES 500,000
- COGS: KES 300,000
Gross profit:
KES 500,000 − KES 300,000 = KES 200,000
The business generated KES 200,000 of gross profit before operating expenses.
Why gross profit matters
Gross profit helps answer a question revenue cannot answer:
Are the things we sell economically worth selling before the wider business costs are considered?
It can help reveal:
- whether pricing is strong enough
- whether product costs are rising
- whether supplier increases are hurting the business
- whether discounting is destroying room
- which products generate the most gross profit
- which services carry stronger direct economics
- whether one branch or channel has weaker sales economics
- whether growth is actually producing more financial room
A sale that produces almost no gross profit can make revenue grow while leaving the business no stronger.
That is why Belvara should never treat “best selling” as the same thing as “best performing.”
Gross profit vs revenue
Revenue is the top-line value earned from the business’s revenue-generating activities.
Gross profit is what remains after the direct cost of those sales is deducted.
Suppose two shops both generate:
KES 1,000,000 revenue
Shop A
COGS:
KES 500,000
Gross profit:
KES 500,000
Shop B
COGS:
KES 800,000
Gross profit:
KES 200,000
Same revenue.
Very different economics.
KES 1 million in revenue can hide a KES 500,000 business and a KES 200,000 business behind the same headline.
Revenue alone cannot tell you which one you own.
Gross profit vs net profit
Gross profit and net profit measure different stages of profitability.
Gross profit deducts the direct cost of what was sold.
Net profit reflects the wider relevant costs and expenses of the business.
Example:
| Item | Amount |
| Revenue | KES 1,000,000 |
| COGS | (KES 600,000) |
| Gross profit | KES 400,000 |
| Operating expenses | (KES 300,000) |
| Other applicable costs | (KES 40,000) |
| Net profit | KES 60,000 |
The business generated KES 400,000 of gross profit.
But only KES 60,000 remained as net profit in this simplified example.
Gross profit tells you whether the sale has room. Net profit tells you whether the whole business managed to keep any of it.
Gross profit vs gross margin
Gross profit is an amount.
Gross margin expresses gross profit as a percentage of revenue.
Gross margin formula
Gross Margin % = Gross Profit ÷ Revenue × 100
Suppose:
- Revenue: KES 500,000
- Gross profit: KES 200,000
Gross margin:
KES 200,000 ÷ KES 500,000 × 100 = 40%
That means the business generated KES 40 of gross profit for every KES 100 of revenue before operating expenses.
Gross profit tells you how much.
Gross margin tells you how efficiently revenue became gross profit.
Gross profit vs markup
Markup and gross profit are related but not the same.
Suppose a product:
- costs KES 1,000
- sells for KES 1,500
Gross profit:
KES 500
Markup:
KES 500 ÷ KES 1,000 × 100 = 50%
Gross margin:
KES 500 ÷ KES 1,500 × 100 = 33.3%
Same transaction.
Three different measures.
A 50% markup did not create a 50% gross margin. The KES 500 gross profit is real. The percentages depend on what you divide it by.
Gross profit vs contribution margin
Gross profit and contribution margin can look similar, but they are not always calculated the same way.
Gross profit typically subtracts cost of goods sold or cost of sales from revenue.
Contribution margin generally focuses on revenue minus variable costs associated with generating that revenue.
A variable cost changes as sales or activity changes.
Depending on the business, contribution calculations may include costs that are not classified inside accounting COGS.
For example:
- sales commissions
- transaction fees
- delivery subsidies
- variable fulfilment costs
may be relevant to contribution analysis even if they are presented elsewhere in the financial statements.
Gross profit tells you what survived direct cost. Contribution margin asks what survived the costs that move with the sale.
Both can be useful.
They answer different management questions.
Gross profit vs cash flow
Gross profit is not cash flow.
A business can report gross profit before the customer has paid.
It can also pay for inventory before the related goods are sold.
Suppose a wholesaler sells:
KES 800,000
COGS:
KES 500,000
Gross profit:
KES 300,000
But customers still owe:
KES 400,000
The business has gross profit.
It may still have a cash-flow problem.
Gross profit can exist on paper while the cash needed to run the business is still sitting with customers.
This is why Belvara must keep:
- sales
- payments
- receivables
- inventory
- COGS
- gross profit
- cash flow
connected without pretending they are the same number.
Gross profit for a product-based business
Consider a homeware business.
During the month it sells:
- Mugs: KES 250,000
- Storage containers: KES 300,000
- Serving trays: KES 450,000
Total revenue:
KES 1,000,000
The products sold cost:
- Mugs: KES 140,000
- Storage containers: KES 180,000
- Serving trays: KES 250,000
Total COGS:
KES 570,000
Gross profit:
KES 1,000,000 − KES 570,000 = KES 430,000
Gross margin:
43%
The KES 430,000 must now support the wider business.
Belvara view: The job of a sale is not just to move stock. It has to leave enough behind to help pay for the company that made the sale possible.
Gross profit by product
Total gross profit is useful.
Product-level gross profit is often more useful.
Suppose:
| Product | Revenue | COGS | Gross profit |
| Product A | KES 300,000 | KES 150,000 | KES 150,000 |
| Product B | KES 400,000 | KES 320,000 | KES 80,000 |
| Product C | KES 200,000 | KES 80,000 | KES 120,000 |
Product B generates the most revenue.
It does not generate the most gross profit.
Product A does.
Your best seller can be your worst use of attention if it generates volume without enough gross profit.
This is why a future Belvara Business OS should let the owner compare more than units sold or revenue.
Gross profit for a wholesale business
Wholesalers often operate with lower gross margins and higher volumes.
Suppose a wholesaler sells:
1,000 units at KES 2,000
Revenue:
KES 2,000,000
Cost per unit:
KES 1,600
COGS:
KES 1,600,000
Gross profit:
KES 400,000
Gross margin:
20%
That may be perfectly workable if:
- stock moves quickly
- customer acquisition is low-cost
- operating expenses are controlled
- customer credit does not absorb too much cash
- supplier terms are favourable
But a small increase in unit cost can hit gross profit quickly.
If cost rises from KES 1,600 to KES 1,700:
New COGS:
KES 1,700,000
New gross profit:
KES 300,000
A KES 100 increase in unit cost reduced gross profit by:
KES 100,000
At volume, small cost changes become big profit changes.
Gross profit for a service business
Service businesses can calculate gross profit using direct service-delivery costs.
Suppose a cleaning business generates:
KES 600,000 revenue
Direct costs include:
- job labour: KES 180,000
- cleaning supplies: KES 70,000
- direct job transport: KES 50,000
Total direct cost:
KES 300,000
Gross profit:
KES 600,000 − KES 300,000 = KES 300,000
Gross margin:
50%
The business still needs to pay:
- office salaries
- rent
- software
- marketing
- administration
A service business that ignores direct labour can massively overstate gross profit.
If the service only exists because somebody worked three days to deliver it, that labour did not become free because there was no inventory barcode.
Gross profit for agencies and consultancies
An agency may bill:
KES 500,000 for a campaign
Direct project costs:
- freelancers: KES 100,000
- production: KES 80,000
- project-specific travel: KES 20,000
Gross profit:
KES 300,000
But if internal team time is a direct delivery cost under the business’s costing approach, failing to account for it can make project profitability look stronger than reality.
The client who pays the highest invoice is not necessarily the client producing the highest gross profit.
Belvara’s future service-business expansion should eventually support project, job or service-level direct-cost visibility rather than forcing service companies into product-only accounting logic.
Gross profit for restaurants
Suppose a restaurant earns:
KES 1,200,000 in food revenue
The food ingredients used for the meals sold cost:
KES 420,000
Simplified gross profit:
KES 780,000
Gross margin:
65%
But the restaurant still has:
- kitchen labour
- rent
- utilities
- delivery commissions
- wastage
- front-of-house staff
- equipment costs
- administration
Depending on the business’s accounting policy, some costs may be classified differently.
Gross profit is an important layer.
It is not the final profit.
Gross profit for salons and beauty businesses
A salon may have more than one gross-profit profile.
Retail products
Revenue:
KES 150,000
COGS:
KES 90,000
Gross profit:
KES 60,000
Services
Revenue:
KES 500,000
Direct service costs:
KES 180,000
Gross profit:
KES 320,000
Total gross profit:
KES 380,000
This gives the owner more information than one combined revenue number.
The salon can see whether retail products or treatments create stronger financial room.
Gross profit for subscription businesses
SaaS companies commonly use cost of revenue rather than traditional product COGS.
Depending on the business and accounting policy, direct delivery costs may include items such as:
- hosting
- infrastructure
- third-party services required to provide the product
- certain support costs
- other direct delivery costs
Suppose:
- Subscription revenue: KES 2,000,000
- Cost of revenue: KES 500,000
Gross profit:
KES 1,500,000
Gross margin:
75%
The company still has operating expenses such as:
- product development
- sales
- marketing
- administration
- broader payroll
A high SaaS gross margin does not mean the company is profitable. It means the product leaves significant room before the rest of the company is paid for.
Gross profit for marketplaces
Marketplace accounting depends on the substance of the arrangement.
If the marketplace acts as an agent and earns a commission, its revenue may be the commission rather than the total value of goods sold through the platform.
Suppose:
- GMV: KES 10,000,000
- Marketplace revenue: KES 800,000
- Direct cost of providing marketplace revenue: KES 250,000
Gross profit:
KES 550,000
The marketplace should not calculate gross profit as if the entire KES 10 million GMV were its revenue unless the accounting treatment supports gross recognition.
Belvara view: You cannot calculate meaningful gross profit from a revenue number that was wrong in the first place.
Gross profit for manufacturers
Manufacturers calculate gross profit after assigning production costs to the goods sold.
Relevant inventory costs can include:
- raw materials
- direct labour
- production overhead
- other appropriate conversion costs
Suppose a manufacturer earns:
KES 3,000,000 revenue
COGS:
KES 2,100,000
Gross profit:
KES 900,000
Gross margin:
30%
If raw material prices rise or production becomes less efficient, gross profit can fall even when selling prices stay unchanged.
How COGS errors distort gross profit
Gross profit is only as reliable as the cost beneath it.
Suppose:
- Revenue: KES 1,000,000
- Reported COGS: KES 550,000
Reported gross profit:
KES 450,000
But the true COGS is KES 650,000 because:
- freight was omitted
- supplier costs were outdated
- stock write-offs were not recorded
True gross profit:
KES 350,000
The business overstated gross profit by:
KES 100,000
Belvara view: Gross profit does not become accurate because the formula is correct. The cost data feeding the formula has to be correct too.
This is why purchasing, inventory costing, stock adjustments and sales cannot live as disconnected records.
Gross profit and landed cost
Suppose a product’s supplier price is:
KES 1,000
But attributable freight, duty, clearing and local transport bring relevant inventory cost to:
KES 1,400
Selling price:
KES 2,000
Using supplier price
Gross profit:
KES 1,000
Using true relevant cost
Gross profit:
KES 600
That is a KES 400 difference on one unit.
Scale that across 500 units:
KES 200,000
If your landed cost is wrong, your gross profit report can reward you for profit you never made.
Gross profit and discounts
Discounts reduce revenue per sale while product cost may remain unchanged.
Suppose:
- Normal price: KES 2,000
- COGS: KES 1,200
Normal gross profit:
KES 800
Now give a 20% discount.
New selling price:
KES 1,600
COGS remains:
KES 1,200
New gross profit:
KES 400
The selling price fell by 20%.
Gross profit fell by 50%.
Discounts do not politely reduce gross profit in the same percentage as price. They cut into the part of the sale the business was counting on keeping.
Gross profit and returns
Returns can reduce both revenue and gross profit.
If a customer returns a saleable product and it is restored to inventory, the accounting records may reverse:
- the sale
- the related cost of goods sold
If the product is damaged or cannot be resold at full value, additional adjustments may be required.
A business that tracks refunds but not inventory returns can distort gross profit.
Gross profit and stock write-offs
Stock that is:
- damaged
- expired
- obsolete
- stolen
- missing
can reduce business value without generating revenue.
Under inventory accounting principles, write-downs and inventory losses are recognised as expenses when appropriate.
The exact presentation can depend on the business.
Operationally, one truth remains:
A product that disappears without being sold never gets the chance to generate gross profit.
That makes inventory control a profit-control system.
Gross profit and pricing
Gross profit helps test whether price is creating enough room above direct cost.
Suppose:
- Cost: KES 1,500
- Selling price: KES 2,000
Gross profit:
KES 500
Now ask:
Can KES 500 help carry:
- operating staff
- rent
- marketing
- delivery
- payment fees
- tax
- administration
- profit
If not, the selling price may be commercially weak even though it is above cost.
“We are selling above cost” is one of the lowest possible standards for pricing. The business still has to survive after the sale.
Can gross profit be negative?
Yes.
Negative gross profit occurs when the direct cost of the revenue exceeds the revenue generated.
Example:
- Revenue: KES 100,000
- COGS: KES 120,000
Gross loss:
KES 20,000
This means the business lost money at the gross-profit level before operating expenses were even considered.
Possible causes include:
- severe discounting
- incorrect pricing
- rising input costs
- inventory write-downs
- loss-making contracts
- costing errors
- unusual adjustments
If gross profit is negative, overhead is not the problem yet. The sale itself is already underwater.
Can gross profit increase while gross margin falls?
Yes.
This is important.
Month 1
- Revenue: KES 500,000
- Gross profit: KES 200,000
- Gross margin: 40%
Month 2
- Revenue: KES 1,000,000
- Gross profit: KES 300,000
- Gross margin: 30%
Gross profit increased by:
KES 100,000
But gross margin fell from:
40% to 30%
The business created more total gross profit because revenue grew significantly.
But each shilling of revenue created less gross profit.
More gross profit can hide weaker economics if the business had to sell far more to produce it.
This is why gross profit and gross margin belong together.
Can gross margin improve while gross profit falls?
Yes.
Month 1
- Revenue: KES 1,000,000
- Gross profit: KES 300,000
- Gross margin: 30%
Month 2
- Revenue: KES 600,000
- Gross profit: KES 210,000
- Gross margin: 35%
Margin improved.
Total gross profit fell.
The business became more efficient at the gross level but generated less total financial room.
Again, both numbers matter.
Gross profit by branch
Suppose a business has two branches.
Branch A
- Revenue: KES 600,000
- COGS: KES 330,000
- Gross profit: KES 270,000
Branch B
- Revenue: KES 800,000
- COGS: KES 600,000
- Gross profit: KES 200,000
Branch B has higher sales.
Branch A generates more gross profit.
The owner now has a better question:
Why?
Possible reasons include:
- product mix
- discounting
- supplier cost
- stock loss
- pricing
- local customer behaviour
Belvara view: A branch can win the revenue leaderboard and still lose the economics.
That is why Belvara’s Business OS should eventually make branch performance explainable beyond top-line sales.
Gross profit by channel
The same product can produce different economics depending on where it sells.
Suppose a business sells through:
- physical shop
- website
- marketplace
- wholesale
- social commerce
Product cost may be similar, but commercial costs can differ.
Gross profit itself may remain based on the accounting direct-cost classification.
But management should also look beyond gross profit to channel-specific costs such as:
- marketplace commissions
- payment fees
- delivery subsidies
- channel-specific discounts
- advertising
This is where contribution analysis becomes useful.
Gross profit is the first profitability layer.
It is not always the last useful layer before operating profit.
Gross profit and product mix
Product mix can change gross profit even if total sales remain similar.
Suppose:
Product A
- Selling price: KES 1,000
- Gross profit: KES 500
Product B
- Selling price: KES 1,000
- Gross profit: KES 200
If customers shift from Product A to Product B:
Revenue may stay flat.
Gross profit falls.
Nothing is “wrong” with the revenue report.
It simply cannot see the economics of the mix.
Revenue can stay perfectly flat while the quality of the sales underneath it quietly deteriorates.
Gross profit and supplier price increases
Suppose:
- Selling price: KES 2,000
- Old cost: KES 1,200
- Old gross profit: KES 800
Supplier increases cost to:
KES 1,500
Selling price stays:
KES 2,000
New gross profit:
KES 500
Gross profit fell by:
KES 300 per unit
If the business sells 500 units:
KES 150,000 less gross profit
No change in selling price.
No drop in volume.
Yet the business became materially weaker.
Your supplier can cut your gross profit without touching your sales report.
This is why Belvara should make cost changes visible alongside selling performance.
Gross profit and growth
Growth can improve gross profit.
It can also hide deterioration.
Suppose revenue doubles but:
- discounts increase
- supplier costs rise
- product mix shifts
- stock losses increase
Total gross profit may rise while gross margin falls.
The business feels bigger.
The underlying economics are becoming thinner.
Belvara view: Growth that produces more revenue but less gross profit per shilling is not automatically better growth.
A Business OS should make that trade-off visible.
What is a good gross profit?
There is no universal “good” gross profit amount.
KES 1 million of gross profit could be excellent for one business and insufficient for another.
The amount needs to be considered against:
- operating expenses
- scale
- business model
- capital requirements
- growth stage
- risk
- gross margin
- historical performance
The better question is:
Does gross profit create enough room to cover operating expenses and generate acceptable profit?
What is a good gross margin?
There is no universal good gross margin either.
Margins vary widely between:
- wholesalers
- retailers
- manufacturers
- restaurants
- software companies
- professional services
- marketplaces
Comparisons should consider:
- industry
- product mix
- scale
- pricing model
- direct-cost classification
- business stage
Blindly copying another company’s target can be misleading.
Common gross profit mistakes business owners make
1. Treating revenue as gross profit
Sales are not gross profit.
Direct cost still needs to be deducted.
2. Using inaccurate COGS
Bad inventory costing produces bad gross profit.
3. Ignoring landed cost
Supplier cost may not represent the full relevant inventory cost.
4. Confusing gross profit with net profit
Operating expenses still need to be paid.
5. Confusing gross profit with gross margin
One is an amount.
The other is a percentage.
6. Looking only at total gross profit
Product, branch and channel mix may be hiding weak economics.
7. Ignoring discounts
Discounts can cut gross profit much faster than expected.
8. Ignoring returns and stock losses
Revenue and inventory adjustments affect profitability.
9. Comparing businesses with different cost classifications
One company may classify certain direct costs differently from another.
10. Celebrating gross profit growth without checking margin
More total gross profit can still come with deteriorating unit economics.
Belvara view: “Gross profit went up” is not analysis. The next question is what had to happen for it to go up.
What should a business track alongside gross profit?
Useful measures include:
- revenue
- COGS or cost of revenue
- gross margin
- markup
- net profit
- operating profit
- landed cost
- discounts
- returns
- stock write-offs
- product mix
- gross profit by product
- gross profit by category
- gross profit by branch
- gross profit by channel
- supplier cost changes
- inventory turnover
- contribution margin
- cash flow
The goal is not to build a dashboard full of ratios.
The goal is to understand what is creating or destroying financial room.
How Belvara helps your business understand gross profit
Gross profit should not be a number somebody manually calculates after month-end.
It is created by operational events:
- inventory is purchased
- landed cost changes
- a product receives a cost
- stock moves between locations
- a sale happens
- a discount is applied
- a return is processed
- inventory is written off
- supplier cost changes
- product mix changes
Belvara connects those events.
That means you should be able to move from:
Gross profit fell by KES 80,000
to:
Why?
And Belvara will help surface possible drivers such as:
- supplier cost increased
- more low-margin products sold
- discounting increased
- stock losses increased
- a branch’s mix changed
- landed cost was updated
The takeaway
Gross profit is what remains after direct cost is deducted from revenue.
For a product business:
Gross Profit = Revenue − COGS
For other business models, the direct-cost label may be cost of sales, cost of services or cost of revenue.
Gross profit is not:
- revenue
- cash flow
- net profit
- gross margin
- markup
It is the first major profitability layer after revenue.
It tells you how much financial room the products or services created before the wider business had to be paid for.
Revenue proves customers bought. Gross profit begins to prove the business model deserved the sale.
But the number is only as trustworthy as the costs beneath it.
That is why Belvara should connect gross profit back to inventory, purchasing, pricing, sales, discounts, returns and cost changes.
The real question is not only:
“How much gross profit did we make?”
It is:
“What created it, what damaged it, and can we produce more of the right kind?”
Frequently Asked Questions About Gross Profit
What is gross profit in simple terms?
Gross profit is the amount left after subtracting the direct cost of the goods or services sold from revenue.
What is the gross profit formula?
For a product business:
Gross Profit = Revenue − Cost of Goods Sold (COGS)
Is gross profit the same as revenue?
No. Revenue is the value generated before direct costs are deducted. Gross profit is what remains after those direct costs.
Is gross profit the same as net profit?
No. Gross profit is calculated before operating expenses and other applicable costs. Net profit reflects the wider costs and expenses of the business.
Is gross profit the same as gross margin?
No. Gross profit is an amount. Gross margin expresses gross profit as a percentage of revenue.
What is the gross margin formula?
Gross Margin % = Gross Profit ÷ Revenue × 100
Is gross profit the same as markup?
No. Gross profit is an amount. Markup compares gross profit with cost, while gross margin compares gross profit with revenue or selling price.
Is gross profit the same as contribution margin?
Not necessarily. Gross profit subtracts COGS or direct cost of sales. Contribution margin generally subtracts variable costs. The measures can therefore include different cost categories.
Can gross profit be negative?
Yes. If direct cost exceeds revenue, the business has a gross loss before operating expenses are considered.
Can gross profit increase while gross margin falls?
Yes. Revenue can grow enough to increase total gross profit even while gross profit per shilling of revenue declines.
Can gross margin increase while gross profit falls?
Yes. A business can improve its gross margin percentage while lower revenue causes the total gross profit amount to fall.
Does gross profit include rent?
General business rent is usually treated as an operating expense rather than COGS, although classification depends on the nature of the business and accounting policy.
Does gross profit include salaries?
Direct production or service-delivery labour may form part of cost of sales in some businesses. General administrative salaries are usually treated separately as operating expenses.
Does gross profit include delivery?
The accounting treatment depends on the nature of the delivery cost. Freight required to acquire inventory can form part of inventory cost, while outbound customer delivery is often classified differently.
How do discounts affect gross profit?
Discounts reduce selling revenue while product cost may remain unchanged, which can reduce gross profit significantly.
How do returns affect gross profit?
Returns can reverse revenue and the related cost of goods sold where the goods are returned to inventory. Damaged returns may require additional adjustments.
How do stock write-offs affect gross profit?
Inventory write-downs and losses reduce business profitability. Exact presentation depends on the circumstances and accounting policy.
What is a good gross profit?
There is no universal good amount. Gross profit needs to be assessed relative to business scale, operating expenses, margin, industry and growth requirements.
What is a good gross margin?
There is no single good gross margin for every business. Healthy gross margins vary significantly by business model and industry.
Why is gross profit important?
Gross profit shows how much financial room the business creates after direct cost but before wider operating expenses.
Should service businesses calculate gross profit?
Yes, where useful. Service businesses may subtract direct service-delivery costs from revenue and use labels such as cost of services, cost of sales or cost of revenue.
How should Belvara help with gross profit?
Belvara should connect gross profit to the operational records that create it: sales, product or service cost, purchasing, inventory, landed cost, discounts, returns and write-offs. As Belvara evolves into a Business OS, the goal should be to explain why gross profit changed, not merely display the total.
What should I learn after gross profit?
The next useful concepts are gross margin, contribution margin, operating profit, net profit, landed cost, break-even point and unit economics.
