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I said if revenue was 2x with the profit margin being the same, the profits would be double. If your margin is 20%, would you rather have $10 in revenue ($2 pr
by donmcronald 4y ago
I said if revenue was 2x with the profit margin being the same, the profits would be double. If your margin is 20%, would you rather have $10 in revenue ($2 profit) or $20 in revenue ($4 profit)?
So if their costs go up 20%, they increase prices by 20% to compensate, and they maintain the same margin, the profits are higher.