"Calif Bill" wrote in message
ink.net...

"Doug Kanter" wrote in message
...
"Fred Dehl" wrote in message
...

If sales go up, profits should as well.

Not necessarily.


Why not? the fixed costs remain the same, so there should be higher
margins even.


Not exactly. If one laborer produces 60 widgets and hour and you sales
increase to 90 widgets an hour, your profits could possibly decrease in
order to meet production.