Hmm. Sort of almost. Yeah nah.
If you're making $50 out of $100 and your income increases 10% (=$10), you're now making $60 from $110.
Your % profit has gone from 50% to 54.5454%.
That's assuming your "50% cost 50% profit" model ... which it isn't ... so nah, yeah, maybe ... nup.
BUT - if you had been making 10% ($10 of $100) and the price goes up by 10% with no additional costs
THEN - you're now making $20 from $110 = 18.18% profit
The latter scenario is closer to reality ... so yeah maybe praps.
Ann: ORR: Board and Management Transition, page-6
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