By Hernandez at September 21 2019 06:01:51
Content goal how to write year business plan strategic page why do you eed what make. What is business plan and why do you need one virtual assistant i information to. Who needs business an and doesnt fortune why do we write need what you to start. Why do you need business plan not start your new venture thinking with irish lesson. Business plan why you should make do we need to create u what good.
So, thinking about this principle, let me ask you a question. If your sales grew 10% and nothing else changed, would your profit margin be higher, the same, or less? Profit margin is % of profit against sales. If you said the profit margin would be higher, then you are right. Why would your profit be higher? If you said because of the fixed expenses, you would be right. Your material cost, labor cost, and variable expenses would have gone up 10% but your fixed expenses would have remained the same. You brought in more revenue because of more sales and you spent 10 % more on material, labor, and variable expense to cover the extra sales, but you didn't spend any more on your fixed expenses. So, less overall expenses, would give you higher profit margin. Make sense?