Murabaḥah is a term for a sales contract where the buyer and seller agree on the markup (profit) or "cost-plus" price for the item(s) being sold, which covers the cost of what?
Murabaha Murabaḥah, murabaḥa or murâbaḥah (Arabic: مرابحة‎ ‎ , derived from "ribh" Arabic: ربح‎ ‎ , meaning profit) is a term of "fiqh" (Islamic jurisprudence) for a sales contract where the buyer and seller agree on the markup (profit) or "cost-plus" price for the item(s) being sold. In recent decades it has become a term for a very common form of Islamic (i.e. "shariah compliant") financing, where the price is marked-up in exchange for allowing the buyer to defer payment (a contract with deferred payment being known as "bai-muajjal"). "Murabaha" financing is similar to a rent-to-own arrangement in the non-Muslim world, with the intermediary (i.e. the lending bank) retaining ownership of the item being sold until the loan is paid in full. There are also Islamic investment funds and sukuk (Islamic bonds) that use "murabahah" contracts.
Gross profit In accounting, gross profit, gross margin, sales profit, or credit sales is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments. This is different from operating profit (earnings before interest and taxes). Gross margin is the term normally used in the U.S., while "gross profit" is the more common usage in the UK and Australia.