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Old 11-12-2008, 02:44 PM
 
Location: NW MT
1,436 posts, read 2,920,194 times
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Quote:
Originally Posted by jmking View Post
In reference to your loss of $45,000, (900,000 x .05= 45,000). So what you are saying is in order to recoup the loss you'll need additional $900,000 in business so that the company recoup the 5% out of the $900,000 for the loss?
Is there any other way ?
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Old 11-12-2008, 03:18 PM
Rei
 
Location: Los Angeles
494 posts, read 1,627,029 times
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Quote:
"In reference to your loss of $45,000, (900,000 x .05= 45,000). So what you are saying is in order to recoup the loss you'll need additional $900,000 in business so that the company recoup the 5% out of the $900,000 for the loss?"


Yep. Because once you figure in payroll, rent, insurance, etc. etc., that's what you're left with.
I disagree... You can't calculate profit linearly. Rent, payroll, insurance and other fixed costs do not change regardless you make an extra $500k or $20k. That's why it's called FIXED costs.
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Old 11-12-2008, 03:59 PM
 
6,226 posts, read 6,830,364 times
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Quote:
Originally Posted by Stephan_K View Post
Is there any other way ?
I'm a working stiff not a business owner. Just attempting to grasp the logic behind the figures is all.
Rei, in response to your post, how would you caculate it or can you be more specific? Thanks
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Old 11-12-2008, 04:50 PM
 
Location: NW MT
1,436 posts, read 2,920,194 times
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Quote:
Originally Posted by jmking View Post
I'm a working stiff not a business owner. Just attempting to grasp the logic behind the figures is all.
Rei, in response to your post, how would you caculate it or can you be more specific? Thanks
That is exactly how I see it too as long as operating expenses are stable. I was wondering if you new of a different way by the way you asked, I wanted to hear what you though that's all...
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Old 11-12-2008, 07:27 PM
Rei
 
Location: Los Angeles
494 posts, read 1,627,029 times
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Quote:
I'm a working stiff not a business owner. Just attempting to grasp the logic behind the figures is all.
Rei, in response to your post, how would you caculate it or can you be more specific? Thanks
LOL.. I'm also a working stiff and not a business owner, but I would assume that the amount of rent and salary (overhead) you pay would be the same whether or not the business an earn extra 100k, 200k or 1M. Most of the time overhead is the majority of company expenses.

Insurance may vary depending on field. Take my civil engineering field for example.
Every time I stamp civil engineering plans, the insurance fee is based on the construction fee +/- contingencies. However, the relationship is not direct/linear proportion and it's usually only a small chunk.

At the very last, you give bonuses at the end of the year depending on annual profit. If the business break even or lose money, you just don't give them bonus.

Then again, I'm not a business owner...
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Old 11-12-2008, 07:45 PM
 
Location: Some place very cold
5,500 posts, read 20,031,522 times
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Quote:
Originally Posted by movin'on View Post
I am thinking with the current state of affairs, it's bringing out the worst in employers. I refer to my job, where we're being threatened on a regular basis with disciplinary action if we do "this," fail to do "that." Normally, I would walk, but don't feel I can.

Anyway, is anyone else seeing this?

I just keep my head down, work hard, and do the best I can.

At this stage in my life, I'm well aware that I'm a minion. I'm don't ask for much. Just trying to make a living.
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Old 11-12-2008, 08:45 PM
f_m
 
2,289 posts, read 7,520,008 times
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Quote:
Originally Posted by Rei View Post
I disagree... You can't calculate profit linearly. Rent, payroll, insurance and other fixed costs do not change regardless you make an extra $500k or $20k. That's why it's called FIXED costs.
I take this as an approximate estimate for profit, from the poster. In other words, one job makes 5%, another 10%, another 0%, etc... Averaging to about 5%. Since this work requires machinery and man hours, all work done takes additional time. The fixed costs will be carried over through the extra time required to do the additional work. If the work took 1 month, then fixing it will take another month, so the rent (and other work time) is doubled for the 1 job. You're assumption would be that the fixed cost would not require any time, so the fixed cost would be divided over the original work time, which would not be the case.

As far as the original question, it depends on the employer. Some employers are good and some are bad, just like anything else. If I sense I wouldn't want to work somewhere, then I would keep looking for another position. The whole issue is leverage. School is the place where building up independence and a plan should take place (i.e. what field to go into, what skills to obtain). That is how more options are made available to someone. Though working entry level positions is still typical of the early stages of a plan.
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Old 11-13-2008, 01:52 AM
 
4,247 posts, read 9,357,144 times
Reputation: 1461
Quote:
Originally Posted by Woof Woof Woof! View Post
I just keep my head down, work hard, and do the best I can.

At this stage in my life, I'm well aware that I'm a minion. I'm don't ask for much. Just trying to make a living.
(((woof woof woof))) you get the hugs for both your user name and what you said. You may be a minion in the work world, but you're no doubt a giant in the real world.
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Old 11-13-2008, 05:53 PM
 
Location: Rockland County New York
2,984 posts, read 5,237,145 times
Reputation: 1288
Quote:
Originally Posted by jmking View Post
I've worked for 35 years and I've earned my keep with my employers by making them money. If not they'd be out of business. You can spin it any old way you want but I'm not buying that fact they are supporting me. Moral support, sure, cash support, not if I don't bring in the business and deliver what was promised. It's a trade off and always was.

You make a great comment. Employers today think you owe them something by keeping us employed. They love the power of knowing that they can destroy their employees at will. I recall on bank manager I worked with had an attitude like she was god. We all worked hard for the bank but she kept telling us a raise was never a certain thing with her. She never realized she was so hated until she threw 4th of July party for her employees. Only her three managers came, leaving twenty of her employees to say the hell with her, including me. Needless to say Monday was like total hell. Yeah she got the message pretty strong about how we felt about her. We never did get our Xmas holiday party.
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