[XBob]

326 - "It's using a different method, but a legitimate one.
I didn't invent this. A CPA with a manufacturing firm invented it. As usual, they have 19 different ways to come up with the answer they want...
But if it's five steps at 15%/step, that seems to be 75% to me..."

LOL, you are right - but ToddsNoTrader hasn't seemed to figure it out. And he uses spurious data to generate his proof.

As you know, There's another rule of thumb, that the end user sale price at high retail is about 500% of the cost of manufacture. And this is also accounts for the labor at each level. So, if you see something advertized for sale for $100, you can generally figure that it cost $20 to make. That's a total of 500% increase.

But look at toddsNoTrader's numbers, he has just one step adding $15 labor to a $100 item, and then being valued at $1000, that's a thousand percent increase, at one level only. ROTFL. He must be an Arab, Chinese or Indian trader.

And he can't seem to figure out that there is no way that is going to happen normally, at that level (4).

[XBob]

Well, ToddsNoMathWiz got me for a few minutes there, because of his screwed up premesis, and methods using dollars and prices to figure labor percentages.

So, here's your chart based on labor hours incremented at 15% per stage:

100
115
132.25
152.0875
174.900625

[Toddsterpatriot]

So, if you see something advertized for sale for $100, you can generally figure that it cost $20 to make. That's a total of 500% increase.

Wow, you really don't understand math.

If something cost $20 to make and you sell it for $100 the $80 increase is an increase of 400%, not 500%.

[Toddsterpatriot]

And he can't seem to figure out that there is no way that is going to happen normally, at that level (4).

The numbers at any point are examples in no way meant to represent real products.

Value added

1st step $10 , $1.50 labor.

2nd step $20 , $3.00 labor.

3rd step $50 , $7.50 labor.

4th step $100 , $15.00 labor.

5th step $100 , $15.00 labor.

Final cost $280 , $42 labor

Plug any numbers you want for value added, labor still totals 15%.