[logicallee]

But selling you a nail for $1 also has some potential support costs - so is it wrong to say that if I buy a nail for $0.25 and sell it to you for $1.00 that has gross profit of $0.75?

But the average customer's support costs might be more than $0.75 -- so would you say that by buying for $0.25 and selling for $1.00 to you, it's actually a loss leader? (I'm really trying to get you to buy more expensive products from me)?

Overall I would like confirmation if this is really what is meant. It doesn't seem to me that support costs would be taken out of gross profit - that is what I think would be taken out of net profits. . .

But I'm sure accountants have well-defined rules on this so I would like to heir their take.