Pikachu Posted November 24, 2009 Report Share Posted November 24, 2009 My dad taught me a heckload of business today, it's part of the Tuesday schedule, 'Talk to my Dad'. I had to be honest, I didn't get most of it. *Note: I am 13.* But I got this: Let's say Wal-Mart earned 400 billion as their total revenue. The revenue cost is 300 billion, so subtract that. We now have 100 billion, that's the gross profit of Wal-Mart. Then, we have expenses, also known as the Selling General and Administrative expenses. That is approximately 75 billion, so let's subtract that from 100 billion. We now have 25 billion, that's the net profit. The damn government now takes some of that 25 million as tax. Other minor expenses are also included. Now the tax totals 13 billion. Subtract 12 billion from 25 billion, you get 13 billion. So in this example, Wal-Mart only gained 13 billion in total. Discuss how things are just not worth it IRL. Link to comment Share on other sites More sharing options...
Ăɍȼẗîȼ Posted November 24, 2009 Report Share Posted November 24, 2009 13 B is a stupid amount of money, without labor costs, which I assume include executive bonuses, etc. All of that goes to the Wall - Mart Family... Link to comment Share on other sites More sharing options...
Dweller of Parables Posted November 24, 2009 Report Share Posted November 24, 2009 What...And you thought that the tax people are charged go to the cashier? This is simple business :/ Link to comment Share on other sites More sharing options...
Dark Posted November 24, 2009 Report Share Posted November 24, 2009 The damn government Best part of the thread. It's not really that hard to comprehend. Link to comment Share on other sites More sharing options...
Azmodius Posted November 24, 2009 Report Share Posted November 24, 2009 1. Post this thread.2. Get peoples attention3. ...PROFIT? Link to comment Share on other sites More sharing options...
CrabHelmet Posted November 24, 2009 Report Share Posted November 24, 2009 Any economist will tell you that that $13000000000 profit is $13000000000 too large. Perfect competition has no such thing - it has producer surplus, but not economic profit. Link to comment Share on other sites More sharing options...
DeREVOLUTION Posted November 24, 2009 Report Share Posted November 24, 2009 You do realize most YCM is under 10 right? Link to comment Share on other sites More sharing options...
Ăɍȼẗîȼ Posted November 24, 2009 Report Share Posted November 24, 2009 Any economist will tell you that that $13000000000 profit is $13000000000 too large. Perfect competition has no such thing - it has producer surplus' date=' but not economic profit.[/quote'] Economic Profit = Profit - Best Alternative Forgone. We are talking about accounting profit here though. Link to comment Share on other sites More sharing options...
Dweller of Parables Posted November 25, 2009 Report Share Posted November 25, 2009 I think I made a thread before explaining economics...It had graphs and stuff. Link to comment Share on other sites More sharing options...
Pikachu Posted November 25, 2009 Author Report Share Posted November 25, 2009 13 B is a stupid amount of money' date=' without labor costs, which I assume include executive bonuses, etc. All of that goes to the Wall - Mart Family...[/quote'] The Selling General and Administrative expenses do include salaries, bonuses and labor costs. What...And you thought that the tax people are charged go to the cashier? This is simple business :/ I just learned this' date=' and I still can't get all of it...yet. The damn government Best part of the thread. It's not really that hard to comprehend. I agree on the best part. ;D You do realize most YCM is under 10 right? Of course, but I also assumed that the minority of the people would post here. Link to comment Share on other sites More sharing options...
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