Make big profit

truthsfifth asked:


But, does it force people to pay these amounts for widgets?
And none of you answer “on the backs of the wage-slaves.”

Amazing.

Where’s Westhill and where’s Longhair?

Category: Politics by admin

3 Responses to “How do “the big corporations” generate a profit? How does any business generate a profit?”

1. Jerry C, on December 7th, 2008 at 10:01 pm Said:

   I honestly don’t understand what is so hard to figure out here.

   Corporation sells a product. Corporation makes money from the product. Corporation sells lots of product and makes lots of money. Question answered.

2. electronic_dad, on December 8th, 2008 at 4:49 am Said:

   Company makes “Widget”.
   It costs company $.10 to make “Widget”.
   It costs company $.05 to sell “Widget”
   Total cost for “Widget” to company = $.15

   Company sells “Widget” for $1.99.
   Company’s “gross profit” on widget is $1.84.

   “Net profit” would be after all other expenses have been factored in. (If my sleepy mind is working correctly!)

   Profit!
   It’s not rocket science!

   T.S.

3. ed031639, on December 10th, 2008 at 10:46 pm Said:

   Buy low, sell high is still the last word here. Most of our larger corporations have simply become brokers that use subcontractors to manufacture all or part of a product they market. Obviously income must exceed expenses for labor & materials plus depreciation on any capital equipment needed to conduct business (buildings & equipment). Income after taxes & operating expenses must exceed outlay to produce a profit.
   Aside from the above paragraph, a corporation must offer some incentive for investors to allow them to use their money to conduct business. This may be rising stock prices or dividends dispersed based upon the profits produced by the company.

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