” I’m ignorant of how businesses come to the numbers.”
Just think about Value. Any employee must generate at least $1 more than the company pays that employee. Otherwise the employee generates no Added Value.
If the employee receives $15 an hour, that employee must contribute $16 an hour in value to the company.
The numbers work like this... say you consistently have a 20% labor cost. The stupid government comes along and doubles your labor cost from 7.5 dollars per hour to 15.... (we’re assuming you can’t schedule less people etc and you have to accept a double labor cost). If your wanting to maintain a labor cost of 20%... 20 percent is how much you need to increase your revenues. So you either sell 20 percent more stuff... or you raise your prices to achieve that.
Hey!