>>>Gross-numbers-irrelevent-Net-numbers-shows-loosing
Does not matter what the costs are, the facts from company released information is that losses grow proportionally to sales, that infers as more items sold then more losses accumulate.<<<
And this you see as continuing indefinitely? The more sales grow, the more expenses grow, therefore never will we see a profit? Really? Perhaps a course in basic accounting may be beneficial to understand the basics of profitability and loss. It is true that some expenses will increase as sales go up. Those are 'variable expenses' which increase only when sales increase, mostly consisting of costs directly incurred when producing the product (ie. material and direct labor) as in "cost of goods sold". Fixed expenses, on the other hand, are expenses that pretty much remain stable month to month regardless of production (ie. payroll for office and management, utilities, advertising, etc.), so as sales increase, fixed expenses remain constant thus allowing for increasing profit at higher sales. It is at a point when gross profit (sales minus cost of goods sold) meets fixed expenses that 'break even" occurs. That is your first goal. Beyond that point of beak even, is where substantial NET Profit occurs as long as sales maintain or increase. More sales -- LARGER net profit. Add increase in price of product and that will increase in net profit by the factor of increase in that sales price. That is why you will always see a stock price rise after a company announces a sales price increase in their products. Bad for consumer but GREAT for the stockholders as NET profit will increase due to price increase.
So to summarize, NO your assumption is wrong: "more items sold more losses accumulate"
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