>Let's say you have a lemonade stand, and your capital expenditure is mostly lemons. In the first year, you buy 1,000$ lemons to produce 1,100$ worth of lemonade that you sell.
>That's a 10% margin on regular days. Next year, you can choose to reinvest and expand your business, buying 1,100$ worth of lemons to sell 1,210$ of lemonade.
>This is an oversimplification
Of course it is!
haha, what the ... 10% margin on lemonade?
I'd say that lemonade margin (in restaurant) is closer to something like 700-1000%
>That's a 10% margin on regular days. Next year, you can choose to reinvest and expand your business, buying 1,100$ worth of lemons to sell 1,210$ of lemonade.
>This is an oversimplification
Of course it is!
haha, what the ... 10% margin on lemonade?
I'd say that lemonade margin (in restaurant) is closer to something like 700-1000%