Your figures are still wrong and mine are still right but I too am tired of wasting my time with this teaching a pig to sing scenario. Have a good night and kiss your boss/clients tomorrow for keeping you employed.
Awww... name calling? People are going to start to think you've painted yourself in a corner. Tell you what, let's try a word problem so you can teach the rest of the class. Note: This is magic Obamaland where increase in prices have no adverse affect on sales and you don't pay any taxes on your extra profit and the cost of insurance doesn't go up (in other words, feel free to ignore current reality in your answers.)
Problem 1: The lyiing evil business owner claims his cost will go up $3,150,000 ($70k x 45 stores).
To break even he'd have to have $63,000,000 in revenue ($3.15m/.05).
Since we all know he's a lyiing sack of dung and you have double top secret access to his books how much revenue does he REALLY have? Show your work.
Problem 2: The evil business owner currently pays $1,500,000 (250 x 6,000) in HC cost for 250 of his employees that he obviously hates. Under Obamacare he'll have to provide HC for all 1,200 of the thankless FT employees or
an increase in costs of $5,700,000! What should he do? We'll make it multiple to choice so the rest of the class can follow.
A) Eat the $5.7m
B) Change the status on 950 of his FT employees to PT so he doesn't have any change in cost.
C) Raise his prices to try and generate another $5.7m. (which again will have no impact on sales in magic Obamaland)
D) A combo, change the status on many (but not all) of his FT employees and implement a small price increase to help cover his increased costs.
E) Math doesn't matter he's a lyiing sack of dung and I just 'know' he's trying to make more money.
Please show your work.
Aces, feel free to jump in there as a successful business owner and help your buddy out with his answers since you both have come to same conclusion.
