4 ms·
25% increase in revenue. 10% increase in units.
by DigitalJack 9y ago
25% increase in revenue. 10% increase in units.
- gordon_freeman 9y agoMust have been due to huge increase in Mac profit margin per unit.
- valuearb 9y agoIt's Mac revenues. Average selling price hasn't changed much.
- FireBeyond 9y agoIf the units have only gone up 10% but revenue has gone up 25% then absolutely, yes, profit per unit has gone up, across the board.
- danmaz74 9y agoTechnically, unit price has gone up for sure. Profits also depend on costs, so it probably went up, but you can't say for sure just from this data.
- FireBeyond 9y agoTrue, but in the context of the parent post, "average sale price hasn't changed much", then if we assume the following: unit price remains stable, unit sales have increased 10%, unit revenue has increased 25%, then profit has absolutely increased (and as you say, only due to a decrease in costs).
- kgermino 9y agoBut revenue is not profit. If units are up 10% and revenue is up 25% then there must have been an increase in average selling price. That alone doesn’t tell us anything about whether profit went up or down.
- FireBeyond 9y agoAck. Yes. This is why my girlfriend is the one on track to become a CPA, not me!
- AceyMan 9y agoI believe you'd could get the same ratios when unit costs go down (e.g., raw materials costs drop, fixed costs such as tooling are amortized, and so forth).
- kgermino 9y agoNo, you could see those ratios with net income or profit but revenue is simply numUnitsSold*avgSellingPrice. It doesn’t take unit costs into account.
- deleted 9y ago[deleted]