GREY:MBLKF - Post by User
Comment by
nerzaaon Mar 14, 2012 4:14pm
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Post# 19670288
RE: RE: RE: RE: RE: RE: RE: Q results
RE: RE: RE: RE: RE: RE: RE: Q results you gotta to stop making assumptions on sensitivity analysis; it's a very dangerous logic, which will hurt you.
md&a quote: "An increase of 10% in the price of plastic resin purchased directly by the Corporation for its Montreal factory would have had an unfavorable impact of $2.6 million and $1.9 million on gross margin for the years ended December 31, 2011 and 2010, respectively."
read it as it is. the 2.6 negative impact from a 10% rise in price is on gross margin ONLY, not on net margin. just because the 2.6 is 20% of 2011 net profit 8.3, you can't assume the same impact on net profit going forward, doesn't work like that.