I know that to calculate gross profit you have to calculate revenue- amount of goods sold. So my question is if you sell your items cheaper will that make your gross income more? Meaning the company makes more money like Walmart for instance they sell their goods for cheap so therefor they get more customers and make more money. Making their cost of goods cheaper making their gross profit more? Correct me if I am wrong I am an accounting student thanks for answers

Gross profit = Units sold x (Unit selling price - unit cost)

If unit selling price goes down and units sold stay the same then gross profit will go down.

For example if units sold = 100, selling price 10 and cost 4

Gross profit = 100 x (10 - 4) = 600

If selling price drops to 8 and units remain the same

Gross profit = 100 x (8 - 4) = 400

Increasing gross profit relies on increasing the number of units sold as the selling price is reduced.

If units sold increased to 170

Gross profit = 170 x (8 - 4) = 680

If you sell your products for a lower price, you may increase sales, but making less profit on each item sold. Depending on how many sales you make, you might increase revenue and gross profits, or not. It's always a risk that companies take when trying to improve revenue and profits by reducing prices. It sometimes works, sometimes not. Reducing cost of goods, overhead costs, and labor costs are more common (and more certain)ways to improved profit.

You are correct that gross profit is calculated revenue- cost of goods sold. If I roast coffee and sell it for $10 per lb. and the cost of the green coffee was $6.00 I make $4.00 gross profit or 40% gross profit. If I sell the coffee cheaper for $9.00. My green coffee still costs $6.00 so my gross profit is reduced to $3.00. So the gross income goes down as the price of the product goes down.

Money! MONEY MONEY