How to Increase Profit Increase Volume or increase Sales Price? If you increase the volume sold you will also increase the cost of good sold. Cost of good sold means: The buying cost of producing the product Operating expenses means: The cost of operating the business to produce the product Therefore increasing volume will require further cash flow. If you increase price there is no further increase in cost of good sold or operating
Tuesday, April 24, 2012
Saturday, April 7, 2012
Street Smart Business Skills-Credit Transactions
A Credit Transaction Credit: Buy Now .... Pay later.... The secret is simple ... follow the money We begin with a position at the start of the reporting period Your Balance Sheet. What you Own minus What You OWE is What Your'e WORTH You then sell product or buy in stock both on Credit: "Buy Now .... Pay later...." How does that effect your Profit & Loss statement? Here’s the deal.. You Buy 1 pen at $5 You pay your supplier
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