This question was asked by an attendee during the Proformative
A video of the webinar can be viewed here:https://www.proformative.com/resources/webinar-video-big-bang-
This question was asked by an attendee during the Proformative
A video of the webinar can be viewed here:https://www.proformative.com/resources/webinar-video-big-bang-
This situation always occurs. Labor is a relatively constant expense in the short-run. The simple math is as follows - if labor costs are $100 and revenues are $1,000, the cost of labor is 10%. Now if the economy plunges and revenues fall to $500, the labor costs go to 20%. You can modify the equation with unit costs and margins, but the math will be similar.