Reply to thread

Message

<blockquote data-quote="Zulkir" data-source="post: 260617" data-attributes="member: 1943">Alright lets assume you are correct. What products do you put out?A) Three products 1) All crunch 2) All cream 3) a mixResult: You make your margin on product 1, you fail to make your margin on 2 and 3. Why? Because those who like crunch will buy product #1 but not 2 (sales 80 units). Those who like 2 will buy 2 but not 1 or 3 (sales 20 units you lost money - your revenue is low and your costs high due to low print runs). Product number 3 will do okay (sales 55 units you sold 20 to the mix crowd but you picked up 10 from cream and 25 from crunch - you didn't make your margins but you didn't lose money).&nbsp; Result you didn't make your margins for the year - you&nbsp; lose your job and maybe a few Elves do to.B) One product all crunch. Congratulations you made your margins (90 units sold - all of the crunch and half of the mixed - they had no other product to buy). Unfortunately, you must lay off 1/3 of your elves.C) Two products 1) All crunch 2) All creamAll crunch (80 units - makes it margins),&nbsp; all cream (20 units loses money). Didn't make margins, lose job, fire Elves.D) Two products 1) All crunch 2) mixedCrunch (80 units makes its margins), mixed (45 units 20 from mixed 25 from crunch - doesn't make its margins but turns a profit). Congratualtions! You made your margins (the mixed didn't pull your numbers down low enough) and you didn't lay off any Elves!Fortunately you invented a thing called the d20 license which allows other companies to make some of those low margin products you can't so they step in and make heavy cream products to make those customers happy. You are happy that they are happy. You are happy that your elves have jobs. You are happy you have a job. You are unhappy about the stock market. But thems the breaks.AV</blockquote>

[QUOTE="Zulkir, post: 260617, member: 1943"] Alright lets assume you are correct. What products do you put out? A) Three products 1) All crunch 2) All cream 3) a mix Result: You make your margin on product 1, you fail to make your margin on 2 and 3. Why? Because those who like crunch will buy product #1 but not 2 (sales 80 units). Those who like 2 will buy 2 but not 1 or 3 (sales 20 units you lost money - your revenue is low and your costs high due to low print runs). Product number 3 will do okay (sales 55 units you sold 20 to the mix crowd but you picked up 10 from cream and 25 from crunch - you didn't make your margins but you didn't lose money). Result you didn't make your margins for the year - you lose your job and maybe a few Elves do to. B) One product all crunch. Congratulations you made your margins (90 units sold - all of the crunch and half of the mixed - they had no other product to buy). Unfortunately, you must lay off 1/3 of your elves. C) Two products 1) All crunch 2) All cream All crunch (80 units - makes it margins), all cream (20 units loses money). Didn't make margins, lose job, fire Elves. D) Two products 1) All crunch 2) mixed Crunch (80 units makes its margins), mixed (45 units 20 from mixed 25 from crunch - doesn't make its margins but turns a profit). Congratualtions! You made your margins (the mixed didn't pull your numbers down low enough) and you didn't lay off any Elves! Fortunately you invented a thing called the d20 license which allows other companies to make some of those low margin products you can't so they step in and make heavy cream products to make those customers happy. You are happy that they are happy. You are happy that your elves have jobs. You are happy you have a job. You are unhappy about the stock market. But thems the breaks. AV [/QUOTE]

Verification