How to understand sales can grow by x% a month while profits are increasing at an even faster pace? Being afraid that one day that increasing sales can be met with decreasing profits?

​Here we see the interplay between fixed and variable costs. Typically, while sales increase in relation to volume, fixed expenses will decrease on a per unit basis, while the contribution margin will remain constant. Effectively, as the company/restaurant surpasses the break-even point, profitability will increase as fixed expenses have technically been covered. Therefore, sales now help cover the variable costs in relation to profit margin, having profitability increase at a faster rate. 
 
In a chart, we will have units in the x-axis and dollars in the y axis. Fixed cost will be a straight line across, while totals costs will begin on the y-axis, where the straight line of fixed costs begin. As you increase sales revenue, the point in which sales revenue and total costs meet will be the break-even point. The gap that forms to the right of the break-even point, will be your profit. The larger the gap, the higher the profit (either through increase in sales revenue or decrease in the variable costs.
 
Breakeven Point is the number of units produced and sold at which the company’s net income is zero.

• Formula: Break Even Point = (F+C)/(P-V)
• Formula: Operating Break-Even Point = F / (P – V), excludes Fixed Financial Costs