Thread: Wal-Mart wants higher wages
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Old 10-31-2005, 04:21 PM
heikstheo heikstheo is offline
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Quote:
Originally Posted by Joker";p=&quot View Post
Even slight overall adjustments to wages eliminate our thin profit margin," he said.
[/quote]

How in the hell does ten billion dollars in profits last year add up to a "thin profit margin?" [/quote] Because profit margins are measured as a percentage of sales rather than in absolute dollars. So, without knowing the gross sales figure as well as the net profit figure, you cannot figure what the profit margin is. Now, let's do a little math here. How to eliminate $10 billion in profits. Give each of 1.7 million employees raises in the amount of $5,882.35/year (salary) or $2.83/hour (wages). Do you really think people should invest money in business hoping to make zero profit?
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