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# Gross Number|Definition & Meaning

## Definition

In **mathematics,** the term **“gross”** can either refer to the number **144** or to the sum of all **earnings** after **deducting** all associated costs. When the word “gross” is used, it refers to a dozen, which is 12 multiplied by 12. **Gross** is the revenue **generated** after expenses when **referring** to costs.

**Gross** may refer to a number, a **mass,** or an **income.** A **“gross”** is twelve dozen. A “little **gross”** is ten **dozen,** and a “large **gross”** is twelve grosses. Typically, retailers buy their **products** in bulk and sell them by the **dozen. **

## Explanation

In regard to numbers, the term **“gross”** can be applied to numbers to indicate that they are before any **deductions** or as a **unit** of measurement. For **instance,** gross profit is the **amount** of profit **generated** by a business after **deducting** the cost of goods sold but before operating expenses.

The **quantity** of an object **being measured** is **considered** the gross quantity before any **deductions** are considered. The following figure shows the gross **number.**

Figure 2 – Representation of one gross number

**Thousands** of years ago, the **mathematicians** of ancient **Mesopotamia** developed the practice of **counting** in **groups** of ten. They employed a robust, albeit laborious, system of mathematics based on the number 60, which is why there are still 60 seconds in a **minute** and **360** degrees in a **circle.**

Twelve’s were **helpful** since they could be counted by hand simply and **multiplied** readily into **sixty.** You have twelve **knuckles** on your **fingers** if you count them from the base up. **Without** having to write anything down, you can easily keep **track** of a dozen if you also use the **knuckles** of your other hand as **counters.**

Figure 3 – Illustration of the gross number

## Uses of Gross Number

A **gross,** which equals **12 dozen,** is a measuring unit that is **occasionally** used. The number of hot cross buns, for instance, would be 144 **hot** cross buns. A great **gross** is **1,728** gross, or twelve gross. In **everyday** speech, a gross is most frequently shortened as **“gr”** or **“gro.”**

## Gross in Economics

In the field of **economics,** the term **“gross”** is used to describe amounts that have not yet been adjusted for any potential **deductions.** For instance, a company may have eight units of **inventory** that it sold but also had two units returned in the same time frame. In this scenario, the **business’s** gross sales would be **eight,** but its actual sales would be **six.**

In **economics,** the word **“net”** is used to describe statistics that have had deductions made from them.

For **instance,** net profit, also known as net **income,** is the difference between gross **profit** and all other costs, **such** as interest and taxes, as well as **operating expenses.** In the case of the **example** above, the **business’s** real sales after returns are **referred** to as its net sales.

## Gross Calculation and Net Sales

The **terms** gross and net quantities are most **frequently** used when **determining** a company’s sales revenue. **Once** the cost of products sold has been subtracted, sales revenue is **computed** as the net gross sales revenue. Said cost is primarily determined by **multiplying** the number of **products** sold by the cost of those things.

Net **quantity** can be used to indicate the total **amount** of items sold by the **company** during that time period as opposed to gross **quantity,** which can only include **returned** goods.

Many **numbers** have a synonym for the **matching** word. **Some** have continued to be well known, like pi. **Others,** such as a “brace” for two or a “score” for twenty, are no longer **often** used, especially in **commercial** settings.

A **gross,** which is an archaic numeral word that refers to 144 of a particular thing, is one of the more **common** ones **you’ll** still use in **business.**

## Example of a Gross Number

The dozen **continues** to be popular in part because it is a very **handy** number that may be divided in a variety of ways. **Consider** for a **moment** that you are **distributing cookies** to several children. If you purchase a dozen cookies, you can evenly **distribute** them among two, three, four, or six **children,** or even five if you save a few for yourself.

That **reasoning** also holds true for your **office** if you **mentally** transform those cookies into ink cartridges and the “kids” into **workstations.** For the same **reason, purchasing** or selling **things** in gross units is beneficial.

A **gross** is a useful **number** to have on hand for many products. No matter how big your fleet or factory is, you won’t order automobiles or **major** machines in bulk, but little **products** are different. It is a **typical** amount for various novelty items and **promotional** goods like pens and **refrigerator** magnets, for example.

Almost anything can be packaged or offered for sale in **amounts** of a gross if it is small enough to be kept in stock, used in **bulk,** and reasonably **priced** to do so.

## What Is Meant by “Gross Pay”?

The total **amount** of money that an **employee** earns for their time spent working is referred to as their **“gross** pay.” It includes the total amount of salary prior to any taxes or other **deductions** being taken out.

In addition to hourly wages or a salary, the term **“gross** pay” **refers** to any additional compensation received from an employer in the form of overtime, bonuses, or **reimbursements.**

For **instance,** if an employer offers you a sales position with a base pay of **$50,000** plus a bonus of $2,500 f, your total **annual** gross income would be **$52,500** if you worked for that employer for a year.

## How Do You Figure Out How Much Your Monthly Gross Revenue Is?

**Simply** divide the total amount of **money** (your pay) that you are paid during the **year** by the number of months in the year. The **method** estimates that your **monthly** gross income is **$6,250** if you earn an annual salary of $75,000, for **instance.** This figure is **derived** from your yearly salary.

## A Numerical Example of a Gross Number

Mr. Ali works for a company that produces goods. His **yearly** pay is **$120,000.** He makes no other money. **Find** out what his monthly gross **revenue** is.

### Solution

**Given** that:

**Annual salary = 120000**

Then:

**= 120000/12 = 10,000**

Hence, his **monthly gross** revenue is **10,000.**

*All mathematical drawings and images were created with GeoGebra.*