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7 months ago
Cupcake Economics 3
Using our spreadsheet to show why prices decrease when utilization is low and prices increase when utilization is high.
reenerbug
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@takalotopopo The "cost of good sold" takes into account the price of all the cupcakes made, whether or not they are sold. That amount is subtracted form the revenue, and it doesn't change when the number of cupcakes sold changes. The reason he doesn't lose money is that he makes a profit with th...