Even if Bay City families flockto the new seafood restaurant, the restaruant would not necessarily be profitable as aresult. Profitability is a function of both revenue and expense.Thus, it isentirely possible that the restaurant’s costs of obtainting high-quality,healthful seafood, or of promoting the new restaurant,might render it unprofitable despite itspopularity. Withoutweighing revenue against expenses the argument’s conclusion ispremature at best.
Even if Venadial is shownconclusively to carry the touted health benefits and to be popular worldwide,Healthy-and-Good will not necessarily earn a substantial profit by acquiringinternational rights to sell Venadial. The memo provides no information about the costsinvolved in manufacturing and distributing Venadial—only that isderived from pine-tree resin and has been produced only in Alta. PerhapsVenadial can be derived only from certain pine trees located in Alta andsurrounding regions. If so, then the costs of procuring Venadialmight prevent thecompany from earning a profit. In short, without more information about supply, demand, and production costs, it is impossible to determine whether the company can earna profit from acquiring international rights to sell Venadial.