Economics 101

After a company has been in business for more than 6 mos. procedures and equipment are modified to improve costs. In addition, volume purchases for the increased volume at MAV result in lower raw material costs. More experienced and efficient labor is another factor. Finally ,new supply sources with lower costs and terms are located. These are some of the points SCRC may be employing to increase their profit margins. Hope this helps your understanding of the reasons for the improved profit margin.