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To: SamAdams76

Exxon like any company operates on margins. If the cost of goods gopes up the margin remains the same, then the gross and net income will also rise.

Anyone who is shocked that oil company profits are on the rise needs to go back and study economics...

Let me guess, Exxons profits rose around about the same in terms of percentage as did the price of oil?

Funny how that works...


99 posted on 08/17/2005 4:36:09 PM PDT by antaresequity
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To: antaresequity

The same idjits who complain about gas prices have no complaint about buying overpriced lattes at Starbucks.


103 posted on 08/17/2005 4:44:24 PM PDT by kaktuskid
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To: antaresequity
Exxon like any company operates on margins. If the cost of goods gopes up the margin remains the same, then the gross and net income will also rise. Anyone who is shocked that oil company profits are on the rise needs to go back and study economics...

You might need to go back to business school yourself. For if the cost of goods goes up, then the added expense should offset the increase in net income.

Example:

I buy 100 widgets from a wholesaler for $10 each and I sell them for $15 each. That produces revenue of $1500. Subtract the $1000 expense and I have $500 in profit.

Now let's say that my supplier raises the price of the widgets to $15 and now I pass that added cost to the consumer and sell them for $20 (as the oil companies claim to be doing). That produces revenue of $2000 less an expense of $1500. Net profit? Still $500.

105 posted on 08/17/2005 4:49:41 PM PDT by SamAdams76 (Mid-life crisis in progress...)
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