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Re: learning curve post# 53868

Wednesday, 04/03/2013 1:39:37 AM

Wednesday, April 03, 2013 1:39:37 AM

Post# of 80868
No it's linear. Whatever reductions in discounts would cause an increase in gross profit. Net Income would increase the same amount if SG&A remain constant. Cost of goods sold would not change only net sales. So if gross margin increased by $1M net income would increase by $1M as well. You cannot compare the percentages because of variable expenses in SG&A.