booger: I think most acountants will say that the 98,000,000 would be stated as revenue, cost of sales would be minus 10% (approx. for board discussion) and the gross profit would be 98,000. The good news: on drop-ship broker deals is that expense is very low as compaired to shipment where you are making a delivery from your own inventory. In other words, much of the 98,000 drops to the bottom line of net profit (bf taxes) Hope that helps.