Assume you run a small service business. The business is incorporated. In a typical year, the business looks like this:

Revenue	$450,000
Salary (to you)	100,000
Salary (employees)	250,000
Rent	53,000
Supplies	20,000
Taxes	25,000
Total Expenses	448,000
After-Tax Profit	$ 2,000

Each year a small amount of profit is left in the business to serve as working capital. You currently bill at $50 per hour. Assume you cannot find more hours to bill.

Inflation has caused rent and supplies to increase by $10,000. What do you do? What if the increase was in taxes instead of rent and supplies? Would your answer be different?