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"This rectangle represents the calculation of sales x price, and the biggest rectangle represents the biggest profit." Err, no. The biggest rectangle represent
by pwaring 15y ago
"This rectangle represents the calculation of sales x price, and the biggest rectangle represents the biggest profit."
Err, no. The biggest rectangle represents the biggest revenue. Profit != revenue, unless you have zero costs.
- jpdoctor 15y agoYes. I've seen a lot of folks that confuse profit and revenue, and most of them are living in a bubble of some form or another. To the author's credit, my guess is that he's living in the bubble of sales&marketing. Their assignments are usually something like "Go out and sell as much as you can!" with little regard to product cost, production limits, or even cost-of-sales. I'm guessing that is why he makes such an elementary blunder.