Revenue Growth vs Operating Expenses
A short building products decision problem. Use the supplied facts, commit to one action, then check your reasoning. Fictional practice; no leaderboard score is recorded.
Building products · reading a P&L
Year-over-year results:
| Last year | This year | |
|---|---|---|
| Revenue | $4.0M | $5.0M |
| Gross margin | 38% | 38% |
| Operating expenses | $1.24M | $1.72M |
| Net profit | $280,000 | $180,000 |