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To: ChicagoConservative27

Once again they confuse profits with profit margins.
If I have a 5% profit margin:
@ $100 I make $5.
@ $200 I make $10.
The profit margin is the same.
Leftists don’t take into account Bideennnnflation.
The price of diesel fuel affects everything.
Pass it on.


3 posted on 06/20/2023 5:15:29 AM PDT by ProfessorLee
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To: ProfessorLee

“The price of diesel fuel affects everything.”

They use the term “net earnings” like it was an endgame. Nothing is an endgame until the game is over.

For those that aren’t aware, net earnings are those that are left when all the bills are paid for a dedicated investment. And that endgame has levels of need from everything to the cost of the suppliers to each level of sales from the source through the wholesalers to the consumer. And all of it is based upon that net profit that many mistakenly believe is for that trip to Disneyworld. Big business uses it to expand whether it be HR or more/different product. Big business doesn’t want the cash, they want more big business. They already had the cash percentage when they started or they were already on their way to the scrap heap before they opened their doors. Everything is that competitive. So it might be safe to consider net earnings as a stepping stone to gross ones. And gross ones generally cost more.

wy69


12 posted on 06/20/2023 5:42:51 AM PDT by whitney69
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To: ProfessorLee

Also, these businesses need to have the cash on hand to purchase product (especially food industry). Has anyone looked at commodities lately? This Ag year has the highest input costs ever. What does that tell you?


16 posted on 06/20/2023 6:15:43 AM PDT by griswold3 (Truth, Beauty and Goodness )
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To: ProfessorLee

There is some gouging going on no doubt... but the public keeps buying products because the fed hasnt finished the job. Consumer credit is at all time high, but people keep buying. Personal saving down to record levels...still buying. A day of reckoning is coming... thats when food (and other staples-as well as the frivilous things that still generate demand) will come down. People like to think they see a light at the end of this tunnel- Im not so sure.


19 posted on 06/20/2023 6:44:15 AM PDT by MrRelevant
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To: ProfessorLee

MATH IS HARD


22 posted on 06/20/2023 7:25:52 AM PDT by ridesthemiles
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To: ProfessorLee
Leftists don’t take into account Bideennnnflation. The price of diesel fuel affects everything.

Good point. Also 'greedinflartion' is a typical Marxist type term.

26 posted on 06/20/2023 8:35:31 AM PDT by GOPJ (Black dem thugs, white liberal 'elites', & sexual weirdos - democrat's team against the rest of us)
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