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<blockquote data-quote="aramis erak" data-source="post: 9122771" data-attributes="member: 6779310"><p>No, you have $2.50 of income... and, unless you're running out of someone else's property with no employees, no rent, no licensure fees, and no other expenses, you don't have $1.25 in profit, because profits are, at least as commonly used, after all expenses. So, income tax (a widely variable number nationwide), employees, building expense, electricity, water, potentially also gas for heating. And any other taxes the state and federal government assess</p><p></p><p>Again, no. Because they have costs to cover, as well as the cost of materials. And of physical space (rental, lease, or mortgage, and land and road frontage taxes), and the costs of employees.</p><p></p><p>Peter would know the rough rates better than I, but he's limited in sharing them due to his employment. </p><p></p><p>They'd be making about $1.25 more profit than selling it on, but after routine expenses, they're probably profiting in pennies per dollar, almost assuredly under $0.20 per dollar.</p><p></p><p>I'll note that the novel authors I know all are recieving under $0.05 per novel sold...</p><p></p><p>Overreduction to ignore the actual profits rather than gross receipts less item warehouser price isn't fair to anyone.</p></blockquote><p></p>
[QUOTE="aramis erak, post: 9122771, member: 6779310"] No, you have $2.50 of income... and, unless you're running out of someone else's property with no employees, no rent, no licensure fees, and no other expenses, you don't have $1.25 in profit, because profits are, at least as commonly used, after all expenses. So, income tax (a widely variable number nationwide), employees, building expense, electricity, water, potentially also gas for heating. And any other taxes the state and federal government assess Again, no. Because they have costs to cover, as well as the cost of materials. And of physical space (rental, lease, or mortgage, and land and road frontage taxes), and the costs of employees. Peter would know the rough rates better than I, but he's limited in sharing them due to his employment. They'd be making about $1.25 more profit than selling it on, but after routine expenses, they're probably profiting in pennies per dollar, almost assuredly under $0.20 per dollar. I'll note that the novel authors I know all are recieving under $0.05 per novel sold... Overreduction to ignore the actual profits rather than gross receipts less item warehouser price isn't fair to anyone. [/QUOTE]
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