GREY:MBLKF - Post by User
Comment by
langeron Mar 15, 2012 2:38pm
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Post# 19675871
RE: RE: RE: RE: RE: RE: RE: RE: Q results
RE: RE: RE: RE: RE: RE: RE: RE: Q results
Ummm ya you can. If it's an expense due to "cost of sale" it will flow straight through to "net" as well. An expense is an expense. It's value of the specific expense doesn't change because you change the analysis from gross to net.
In terms of the 2.6 vs net 2011 profit, I'm afraid that is exactly how that works. If all things are equal (sales, expenses, etc ... ) and the only thing that changes is resin pricing increases 10% then it will have the exact impact of the expense increase to net profit. With the full knowledge that all business are variable and do change the impact will be relative to the amount of resin that is required but it will still be true impact to net. The only thing that might change this is if there were special tax rebates related directly to resin purchase that wouldn't be shown in gross.