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 - Adding an Hour Meter - by Steven Gussey. This article tells how I added an electric hour meter to my 1942 Farmall H after rebuilding it. I wanted to keep an accurate maintenance schedule for my rebuilt engine and the implements I use with my tractor, but the H was never available with a tach
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