Achieve the Four Modernizations.

smajor82
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Apr 9 smajor82 commented on Knife Attack at School Outside Pittsburgh.
@5 Jesus is totally ripped - looks like he would really know how to please a man. When you're jerking off to that picture, do you feel shame for all the precious seed you waste?
Apr 8 smajor82 commented on Headline of the Day.
Peniskuchen - Ha!
Apr 8 smajor82 commented on Support Traditional Adultery.
@12 - Ha! Don't hide a gem like that in an unregistered comment.
Apr 7 smajor82 commented on Catholic Church Stands With Undocumented Immigrants.
@3 You mean the Irish? No, wait, that's early 20th century bigotry. So hard to keep with the modern racist these days. Just to be clear, we're still hating gay people, Jews, and anyone whose skin color isn't white, right? I haven't been to a Klan meeting in a while so I'm not too sure anymore.
Apr 3 smajor82 commented on Your Favorite Indie Shop Is Out of Business if $15-an-Hour Happens.
@200 (i.e. in response to myself) - It's not an 18% increase, it's a 60% increase, so the increase in prices would be closer to 16%. Big reading failure on my part.
Apr 3 smajor82 commented on Your Favorite Indie Shop Is Out of Business if $15-an-Hour Happens.
Some terrible math - if payroll accounts for 30% of your costs, then an increase of 18% in payroll costs would not require an increase of 18% in your prices to make the same amount of money. There are 2 things wrong there.

1) Payroll would have to account for 100% of your costs for that to begin to make sense.

2) Proportionately raising your prices to cover your costs would keep the proportion of what you keep to what you charge the same, but since you are charging more this would actually increase your profits.

Try this:

Your total costs (TC) are made up of 30% labor, so Labor cost (LC) is 0.3*TC. Your other costs (OC) are then 0.7*TC. Now labor costs go up by 18%. That means LC' = 1.18*LC = 1.18*0.3*TC = 0.354*TC. So your total costs are now LC' + OC = 1.054*TC. So your total costs went up 5.4%

Now, your profit is total revenue (TR) - total cost: P = TR - TC. You say your profit margin is around 5%, so TR = 1.05*TC. So P = 1.05*TC - TC. Your new profit is P' = TR - TC' (no change in your prices yet) = 1.05*TC - 1.054*TC. To make the same amount of money, you need to increase your TR to 1.104*TC, since 1.104*TC - 1.054*TC = 0.05*TC, which is 5% of your (original) costs. That requires a 5.1% increase in your prices (divide 1.104 by 1.05). Notice that 5.1 is significantly less than 18.

This ignores of course the fact that higher prices decrease demand, so maybe you need to raise prices 6%. But at the same time, a higher minimum wage paid by everyone means an aggregate income effect which would increase demand, so maybe you can get away with increasing prices less. But in no (logically constructed) scenario do you have to raise your prices by 18%.

That's what a rational argument looks like.
More...
Mar 25 smajor82 commented on Christian School Expells Eight-Year-Old Tomboy.
The headline should read: Christian School Does Girl a Favor.
Mar 25 smajor82 commented on Christian School Expells Eight-Year-Old Tomboy.
@2 Yikes. Spot on, but yikes.
Feb 3 smajor82 commented on Scientology's Creepy Super Bowl Ad.
wait ... Scientology is real?
Jan 24 smajor82 commented on SL Letter of the Day: Frozen.
@20 I find your judgmental attitude towards other people's kinks and your casually transphobic comments to be wonderfully refreshing.
 
 

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