When you increase sales by $1, the company doesn't keep a dollar.
After all expenses, the company keeps 20 cents, 30 cents, or whatever your net income margins are.
When you remove $1 from expenses, you can add a $1 straight to your bottom line.
Why is this awesome:
- More money
- Change your net income percentage so you keep more of your revenue
In this case, $500,000 was added straight to the company's net income.
When you grow a business, looking at sales is too narrow, you need to see the whole picture.
- Expenses
- Net income
- Fixed vs variable expenses
A CFO can help you with this.
DM if you want help.
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