Schuylaars Sesh - The New Wedge Issue for 2014 Mid-Terms..

[tokeprep]

Actually, the gross profit margin is found after deducting the cost of goods from the gross sales.
If you take a gross sale of $1.3million, subtract the cost of goods of 30%, you get $910k
So the gross margin of 24.6% adds up to about $224k

Then add in taxes and rents.

Still, nowhere near what some of these people on here think these owners are making.

Operating margin is operating income divided by revenue. If the operating margin is 24.6%, operating income must be $320,000. If operating income were $224,000, that would reduce operating margin to 17.2%.

 

[ChesusRice]

Operating margin is operating income divided by revenue. If the operating margin is 24.6%, operating income must be $320,000. If operating income were $224,000, that would reduce operating margin to 17.2%.

Beenthere will cite a source for his franchise owners making 50k a year any day now.

 

[ginwilly]

Beenthere will cite a source for his franchise owners making 50k a year any day now.

The actual source you posted said that while many net profits were unreported they still showed the average of some franchises. Some were as low as 27K. I would be willing to place a bet with you that some of the unreported actually had losses. Some franchises do make bank though, that's inarguable.

 

[beenthere]

Operating margin is operating income divided by revenue. If the operating margin is 24.6%, operating income must be $320,000. If operating income were $224,000, that would reduce operating margin to 17.2%.

I think you are forgetting the gross margin, I believe it was 70%
The gross margin is the percentage of gross profit from your gross sales.

Revenue is your top line, not gross sales.

 

[UncleBuck]

how many businesses failed when we last raised min wage by 41% because of that wage hike?

any of you profound righties have even a single example of one?

 

[nontheist]

how many businesses failed when we last raised min wage by 41% because of that wage hike?

any of you profound righties have even a single example of one?

 

[tokeprep]

I think you are forgetting the gross margin, I believe it was 70%
The gross margin is the percentage of gross profit from your gross sales.

Revenue is your top line, not gross sales.

Use the equation. Operating margin = operating income / revenue. 24.6% = x / $1.3 million. Operating income must be $320,000.

 

[beenthere]

Go to the goal post moving section of the forum and make your argument there.

how many businesses failed when we last raised min wage by 41% because of that wage hike?

any of you profound righties have even a single example of one?

 

[beenthere]

Use the equation. Operating margin = operating income / revenue. 24.6% = x / $1.3 million. Operating income must be $320,000.

Sorry bro, I feel it's the wrong equation.
Revenue is top line (gross profit)

 

[beenthere]

Operating margin is operating income divided by revenue. If the operating margin is 24.6%, operating income must be $320,000. If operating income were $224,000, that would reduce operating margin to 17.2%.

There you have it.Net profit (operating income) divided by revenue (gross profit) not gross sales

 

[tokeprep]

Sorry bro, I feel it's the wrong equation.
Revenue is top line (gross profit)

It's the operating margin equation. Do you have some other magical operating margin equation that uses different parameters?

http://www.investopedia.com/terms/o/operatingmargin.asp.

http://accountingexplained.com/financial/ratios/operating-margin.

http://en.wikipedia.org/wiki/Operating_margin.

Same equation every time.

 

[tokeprep]

There you have it.Net profit (operating income) divided by revenue (gross profit) not gross sales

Revenue is not gross profit.

 

[beenthere]

It's the operating margin equation. Do you have some other magical operating margin equation that uses different parameters?

http://www.investopedia.com/terms/o/operatingmargin.asp.

http://accountingexplained.com/financial/ratios/operating-margin.

http://en.wikipedia.org/wiki/Operating_margin.

Same equation every time.

OK tokeprep, you win, I'm wrong

I'm done arguing these small points.

 

[UncleBuck]

 

[UncleBuck]

Go to the goal post moving section of the forum and make your argument there.

i'm just waiting on a single example. that's all.

 

[tokeprep]

OK tokeprep, you win, I'm wrong

I'm done arguing these small points.

What is there to argue? You should have admitted you were wrong when you looked at the equation. Instead you tried to redefine revenue as gross profit.

I did six years of accounting, so I am not impressed.

 

[beenthere]

i'm just waiting on a single example. that's all.

The op was about the federal government raising the minimum wage to $15hr and how most if not all franchises could not sustain it.
Do you disagree, or not?

 

[beenthere]

What is there to argue? You should have admitted you were wrong when you looked at the equation. Instead you tried to redefine revenue as gross profit.

I did six years of accounting, so I am not impressed.

OK tokeprep, OK.

 

[UncleBuck]

The op was about the federal government raising the minimum wage to $15hr and how most if not all franchises could not sustain it.
Do you disagree, or not?

do you have a single example showing they haven't been able to in the past?

 

[UncleBuck]

OK tokeprep, OK.

PWND like a LITTLE BITCH.

LMFAO.