Um. No. If your bottom line is 1 million out of revenue of $50 million. Subtract 8% of revenue = sales of $46 million. Your bottom line is now -3 million. Don’t ever run a business.
“Um. No. If your bottom line is 1 million out of revenue of $50 million. Subtract 8% of revenue = sales of $46 million. Your bottom line is now -3 million. Don’t ever run a business.”
1 million is 2% of 50 million, so the margin is 2% of whatever revenue there is. If the revenue is 46 million, the bottom line is 2% of 46 million, or $920 thousand.
What you are saying is the cost of doing business is a constant $49 million, regardless of the revenue. If that’s how your business is run, it will not last long.
Hank