Replies to post #14435 on Labor Smart Inc (LTNC)

[cpw13154]

So are we saying there net profit is going up? Really? Lol! So let's see so last year for the year they had a loss of lets a little over 100,000 and this year there going to be well over 2 million for the year, million that is, so please show me where net profit goes up with revenue increases. Lets not go with the gross profit as we all know that means NOTHING to the bottom line.lol

[philipt631]

Simply put

More revenue equals less operating cost per office as the offices are not seperate buisneses

All offices share the same financial department, same payroll department, same marketing department etc all based at the home office. Granted each office will have to file seperate state taxes etc however this all done via the main office in Georgia and not locally.

These costs are now spread over XX amount of offices versus each office being it's own buisness unit.

This alone increases profit.

Yes as office and buisness increases personal at the home office will need to be added however this headcount get spread over the amount of offices.

Added offices brings costs down not up thus makes each office even more profitable by sharing costs