:: Profit for Dummies - Part 2 ::

Sorry to patronize but as I meet so many that have forgotten. Here are the very basics of Producing.

Rules:

The company is to produce a product or service costing X.

The money spent on producing X is called The Cost (C).

The number of products or service unites is called The Quantity (Q)

X is equal to C divided by Q.

Tips and Tricks:

A. Some highly educated people will use "c" (that is lowercase C) instead of X. The concept of producing is hard enough to understand, there is no reason to complicate things even further.

B. If you are a new-economy wiz, and is familiar with mathematical equations you will probably figure out that if you reduce C to Zero, X will be Zero too. This is true.

C. Many will assume that following the above strategy and than "squeezing" a little bit more on the cost will turn a profit. This is false.

D. Mathematically Q can't equal Zero. However, this situation might be familiar to you if you are involved in the Start-Up industry. Scientists around the world are still contemplating with the phenomena. The verdict is undeceive but recent research shows that though this situation is unlikely to turn a profit in earth's gravitational pull, it is acting as a gravitational force for investor's money.

To be continued.

Wadi Writer #1 (Gray)

WadiList@mail.com