Author
|
Thread
|
|
|
|
|
|
|
LightningCrash
Smile like Bob, order your free LC today
Joined: 03 Apr 2003
Posts: 5020
|
|
|
MooseDog wrote: Big Oil Suck Big Balls. Record profits... yeah, no freakin' wonder, they're ripping our dang lips off with their sky rocketing prices.
well, they have a roughly set profit margin percentage, when the price of oil fluctuates, the output of that margin changes.
for instance.....contractors normally run a 20% O&P (Overhead and Profit) on top of their costs..... before Katrina, roofing down here was $200 a square at cost. After Katrina, it was $300 a square for a good while
120% of $200 = $240 , contractor's cut = $40
120% of $300 = $360 , contractor's cut = $60
is the contractor making more money? yes
did they do anything for it? no
they only make more money because the COGS went up. Their profit margins are still the same.
similarly, oil companies are only making more money because the cost they incur for crude has gone up, not necessarily because they feel the need to gouge you more at the pump. if anything subversive like that was happening, the SEC would be all over them like Herb Dean on Ken Shamrock.
|
Sun Jul 09, 2006 2:59 am
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|