Well, when you operate on a "cost plus" arrangement, you can do that... They have corporate profit goals of let's say 10%. Quite modest, really. BUT, let's say you run a shop and your raw material triples in price - can you simply raise the price of your product to adjust so that you can still make 10% - He!! no. Not if you expect people to still buy it.
BUT, since we HAVE to have oil/gasoline, the price goes up and *poof*, profit PERCENTAGE stays the same.
HOWEVER - let's say we use $30/barrel oil and just for numbers sake, take 10%, that'd be saying that Exxon would make $3/barrel of oil used. Now if the price goes to $90/barrel, they won't be happy with making $3/barrel, so take 10% and badda-bing, they make $9/barrel. Go figure, still made 10%, just a lot more money.
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Today's Featured Article - Trenching With a Plow - by Staff. Introduction: This interesting information came from one of the discussion forums here at YT. We thought we should place it up front so it could be read by anyone interested in putting old iron to work. [Editor] I tried something new today, and it worked so well I thought I should post it - in case it might help someone else. I'm running 100 yards of 4" drain pipe from the gutter downspouts of our house to a pond down the hill. This should hel
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