Keffola I feel you are assuming some costs are variable when in fact they are fixed , ie occupancy costs and R&D are fixed yet you are using them to determine the same gross margin of 40% which makes them variable costs
Personally feel it better to just keep fixed costs the same as sales increase , which will mean margin improves from 40% to greater than 50% .
Keffola I feel you are assuming some costs are variable when in...
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