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Originally Posted by Hollywood376
if I'm not mistaken, shouldn't higher prices for oil lower their profits? Oh, I forgot... they just fuck me when I go to the pump.
I'm more angry that I don't have any exxon stock. At least then I would be getting a rebate in the form of a dividend check.
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Umm.... No
If the price of something goes up and profit margins stay the same how the hell would they lose money?
Here it is in simple kindergarden terms for you guys to understand.
You sell a product.
You set a profit margin of 10% for said product.
It's costs you $100, thus you sell it for $110.
You sell 100,000 units and make $1mil.
The price suddenly doubles. It now costs you $200 to get the product. You still sell it at a 10% margin for $220.
Sell 100,000 units now and you just doubled your profits without increasing your margin.
