Doubling profit is relatively easy. If you have 10M of revenue and 9.5M of expen...

		lesuorac on July 25, 2024 \| parent \| context \| favorite \| on: Every company should be owned by its employees Doubling profit is relatively easy. If you have 10M of revenue and 9.5M of expenses then an increase of 500k in sales doubles your profit. Given that everybody in the company is needed (for sake of argument) to produce the initial 10M I wouldn't say that the CEO inking a new sale for 500k is worth the entirety of the original company.

Your example assumes 100% gross profit margins which is unlike any company I've ever heard of.