Daily Archive: December 17, 2010

Dec 17

avatar

Shareholder Question: Profitability

WBC - I - Expense vs Profit slope

QUESTION: Is it true that the company will lose money by selling more? ANSWER: The question arises from a common misunderstanding between “fixed expenses” and “variable expenses”.  In the formative period of the company, it is necessary to have a minimum critical mass of infrastructure to operate professionally.  This minimum infrastructure is required even if …

Continue reading »

Powered by Netfirms