Cseeman

07-05-2011, 06:10 PM

I am sorry for a second highly complicated post. I think i have finally let some of the assholes on DU get to me with thier insane "logic"

ok you have a made up corporation called A Corp. A Corp makes widgets and is a U.S. based company with 50,000 employees and 5.4 billion in sales (calculated below). A Corp has 30,000 employees working on manufacturing lines making widgets. wdigets can be made by one indivdual.

A Corp is a publically traded company and its average share price for the year is $5.00

a typical widget maker on A Corp manufacturing floor makes $20.00 per hour.

so if he works no overtime he makes (50 weeks * 40 hours = 2080 hours times $20.00 per hour= $41,600.

A single widget maker can make 5 widgets a day and widgets sell for $50.00 per widget.

360 days times 5 perday by each widget maker x 30,000 widget makers selling for $50.00 per widget equals 5.4 billion in revenue.

so a single widget maker makes 1,800 widgets per year and each widget sells for $ 50.00 so he basically generates $90,000 in revenue. his salary is $41.600 and lets add 10% for benefits. so his total cost is $41.600 times 1.10 = $45,760

so he generates $90,000 in revenue and costs $45.760 basically a return of 50% on investment.

A Corp has a CEO that makes 2.5 million in base salary. lets say he gets a 2% bonus on accounting net profits and also get 50,0000 shares of stock per year.

based on his strategic decisions the CEO of A Corp is responsible for generating 5.4 billion in sales.

his cost is 2.5 million plus lets say because of executive perks the percentage of his benefits are 20%

2.5 times 1.20 = 3.75 million

let's calculate his return 5.4 billion in revenue that costs 3.75 million is a net profit of 5 billion

is a great percent return on investment.

so in my book paying the Ceo 2.5 million to generate 5.4 billion in revenue and getting a 2000 times return on my investment makes alot more business sense then getting a 50% return on my investment.

ok you have a made up corporation called A Corp. A Corp makes widgets and is a U.S. based company with 50,000 employees and 5.4 billion in sales (calculated below). A Corp has 30,000 employees working on manufacturing lines making widgets. wdigets can be made by one indivdual.

A Corp is a publically traded company and its average share price for the year is $5.00

a typical widget maker on A Corp manufacturing floor makes $20.00 per hour.

so if he works no overtime he makes (50 weeks * 40 hours = 2080 hours times $20.00 per hour= $41,600.

A single widget maker can make 5 widgets a day and widgets sell for $50.00 per widget.

360 days times 5 perday by each widget maker x 30,000 widget makers selling for $50.00 per widget equals 5.4 billion in revenue.

so a single widget maker makes 1,800 widgets per year and each widget sells for $ 50.00 so he basically generates $90,000 in revenue. his salary is $41.600 and lets add 10% for benefits. so his total cost is $41.600 times 1.10 = $45,760

so he generates $90,000 in revenue and costs $45.760 basically a return of 50% on investment.

A Corp has a CEO that makes 2.5 million in base salary. lets say he gets a 2% bonus on accounting net profits and also get 50,0000 shares of stock per year.

based on his strategic decisions the CEO of A Corp is responsible for generating 5.4 billion in sales.

his cost is 2.5 million plus lets say because of executive perks the percentage of his benefits are 20%

2.5 times 1.20 = 3.75 million

let's calculate his return 5.4 billion in revenue that costs 3.75 million is a net profit of 5 billion

is a great percent return on investment.

so in my book paying the Ceo 2.5 million to generate 5.4 billion in revenue and getting a 2000 times return on my investment makes alot more business sense then getting a 50% return on my investment.