The impact on the bottom line of an expansion in profit margins can be enormous; hence its character should not be overlooked.

		Consider a company that manufactures 10 widgets at a cost of $9 each and sells them at $10 each. It has total sales of $100, operates on a 10% margin of profit, and makes a net profit of $10.
		If that same company is able to increase its unit sales by 10%, it will sell 11 widgets and bring down a profit of $11. A 10% increase in unit sales, then, produces a 10% increase in profits.
		If, however, this same company is able to increase the price of its widgets by 10%, to $11 each, even if it sells no more than 10 widgets, it will increase its profits by 100%. Similarly, if it can cut its cost per widget by 10%, it will increase its profits by 90%.