[ale] OT: gas going up this weekend

[Katherine Villyard]

I shouldn't, but...

On Wed, Apr 27, 2011 at 6:53 PM, Damon L. Chesser <damon at damtek.com> wrote:

> BTW, If you double the cost of a product, but keep the same profit
> margin, you will have "record" profits.  8% of $100 is $8:  8% of $200
> is $16.  See?  Record profits!  We have to do SOMETHING!  THEY are
> raking in money hand over fists!

Your example implies but doesn't specifically state manufacturing
costs.  If you make a product and sell it for $100, and you have a
profit of 8%, or $8, then it cost you $92 to make it.  If double the
cost of the product you make for $92 and sell it for $200, you have a
profit of $108, or 54%.

Does it really cost your hypothetical company twice as much to make
the same product this year as it did last year?

Katherine