imvii@lemmy.ca to Canada@lemmy.caEnglish · 6 days agoTrump, the dumbest man on earth, just doubled down on his dumb.lemmy.caimagemessage-square56fedilinkarrow-up124arrow-down10
arrow-up124arrow-down1imageTrump, the dumbest man on earth, just doubled down on his dumb.lemmy.caimvii@lemmy.ca to Canada@lemmy.caEnglish · 6 days agomessage-square56fedilink
minus-squarepseudo@jlai.lulinkfedilinkarrow-up0·5 days agoI see. Since the tarif is proportionate to the final price, the final price needs even higher than the initial price times (1 + tarif) in order to keep the profit the same.
minus-squareSludgeyy@lemmy.worldlinkfedilinkarrow-up0·5 days agoNo, because (1 + tariff) isn’t enough to keep up with the tariff because as the price goes up, the tariff also goes up. Like in the example going from $5 to $6.25 (5 × (1+.25)). Would result in 31 cents less per bottle. It needs to be ~33% more or $6.67 for the syrup company to keep the same profit with a 25% tariff. Final Price × Tariff % = Tariff Amount Final Price - Tariff Amount = Cost of Good Sold Cost of Good Sold - Expenses = Profit So if you need $2 profit $2 = (Final Price - (Final Price × Tariff %)) - Expenses $2 = (X - (X×.25)) - $3 $5 = X - .25X $5 = .75X X = $6.67 Formula would be Profit = (Final Price - (Final Price × Tariff %)) - Expenses
I see. Since the tarif is proportionate to the final price, the final price needs even higher than the initial price times (1 + tarif) in order to keep the profit the same.
No, because (1 + tariff) isn’t enough to keep up with the tariff because as the price goes up, the tariff also goes up.
Like in the example going from $5 to $6.25 (5 × (1+.25)). Would result in 31 cents less per bottle.
It needs to be ~33% more or $6.67 for the syrup company to keep the same profit with a 25% tariff.
Final Price × Tariff % = Tariff Amount
Final Price - Tariff Amount = Cost of Good Sold
Cost of Good Sold - Expenses = Profit
So if you need $2 profit
$2 = (Final Price - (Final Price × Tariff %)) - Expenses
$2 = (X - (X×.25)) - $3
$5 = X - .25X
$5 = .75X
X = $6.67
Formula would be
Profit = (Final Price - (Final Price × Tariff %)) - Expenses
Thanks !
No problem!