"Kaleb C. Striplin" wrote: > > Now lets all learn the difference between PROFIT and PROFIT MARGINE.
Let's say your sales are 100 billion, and your margin is 2%. Now let's say that your product is a commodity, and the market price doubles through no fault of your own. If your cost structure stays the same (Exxon/Mobil buys some of its oil, so the cost structure changes, but let's assume it stays the same) your profit margin is now 51%, and you make more in one year than you would have made in 50 years at the old price. Should your paycheck now go up 50x? How about if your Chairman retires during the windfall, should he get 10x as much as the next highest paid oilman in the world? Why not, what are the company's owners going to do about it if you do?
