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Re: deafelephant post# 26126

Friday, 05/11/2012 2:48:23 PM

Friday, May 11, 2012 2:48:23 PM

Post# of 80876
Sort of. Say MP has sales of 19 mil one quarter and earnings of 1 mil. The next quarter if they have 38 mill in sales there gross profit margin would also rise, so they should make more than 2 mil on 38 mil in sales. Key word is should. If there gross profit margin does not increase with the increased sales there is something very wrong here.

Edit:
I am just saying as sales increase there operating costs should not increase hand in hand with sales.

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