Mate that’s not the best analogy. In your example the cafes are multiplying the costs by the number of shops.
I think what is more accurate is you still have one cafe, and with the same fixed cost you miraculously increase your customers by 10x or 20x at a specific margin.
In EN1s case my understanding is the fixed cost is circa 550pm, and margin 40% of invoice so the numbers look something like this based on turnover, ad cost, fixed cost and net profit:
1,000,000, 600,000, 550,000, (150,000)
1,500,000, 900,000, 550,000, 50,000
2,000,000, 1,200,000, 550,000, 250,000
Ie for every 500k increase in monthly turnover, bottom line is $200k accrediting.
EN1 Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held