How much sales tax will I have to pay? Posted on June 03, 2011

I run a small e-commerce site with a licensed image. In regards to payment, the contract says the following: "In consideration of the grant of the license for use of the Trademark, LICENSEE shall pay [redacted] a royalty equal to twenty five percent (25%), of net revenue received for the sale of the Licensed Goods.... " I sell the shirts for $20, I make roughly $10 profit per shirt, not including the royalty fees. My question is: What does net revenue received mean? I have been paying royalties of %25 of $20, so ~$5. If I'm only making $10 a shirt, (net revenue?) shouldn't I only have to pay $2.50? Thanks you for reading.

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