you stay at the 5% margin
Posted on: May 4, 2021 at 11:19:46 CT
tigerinhogtown STL
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cause the taxes come out prior to margin calc.
The point was the increase will me minimal and easy to hide compared to the inflation increases we are gonna see.
It's not a 7% increase on the cost of the goods. It's .35% (if yo have a 5% margin) or 7%*your current margin. If you have a 100% margin then the increase would be 7% to maintain the current profit. But you can absorb the increase if you are fortunate enough to have a 100% margin
Edited by tigerinhogtown at 11:22:45 on 05/04/21