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sagan

05/19/11 10:37 AM

#56435 RE: dupedbysteve #56433

Doesn't work that way. Start up costs are ALWAYS higher than growth costs. Again, read a book and learn something.

the cork

05/19/11 10:51 AM

#56446 RE: dupedbysteve #56433

Not sure that makes any sense to me.

"how about the increasing costs to achieve a higher revenue stream?"

It doesn't work that way.

As for the "Suppose for every unit of revenue, costs went UP 3 fold?"

In the first place, the "suppose (what if) scenario" lacks credibility by virtue of the nebulous ill defined condition.

I could "suppose" the sun isn't coming up tomorrow (and base a lot of verbiage on it), but the probability is that yes, the sun IS coming up tomorrow, therefore wouldn't it be stupid to waste my time and attention on it.

In the second place the price of gold has increased substantially, rendering increased fuel costs (for example) less of an issue.

If the cost of fuel went up 2 bucks that costs us an extra 120 bucks (60 gallons per day).

The cost break down at the lower fuel cost worked when gold was at 1,000 per ounce so even with the recent take downs in gold price, we still work out at 1500 or what ever it is right now.

I think the extra 2 bucks in fuel costs is absorbed by the extra 500 bucks in gold price.