How much money did he make?
- Thread starter Loquacious
- Start date
konceptjones
The one between three and three.
You can't make that assumption. The only thing we have to go on are the numbers in the scenario as presented. In that scenario, he makes $10.
LUCIEN
I hate getting punched in the head
We can. He starts with a $60 purchase, sells his $60 goat for $70, and then buys another for $80, which means he has more than just that first $60
konceptjones
The one between three and three.
He doesn't buy another one, he buys the SAME GOAT back for $80 and that's where the difference lies. If this was a matter of two different goats, then you'd have something there, but that's not the case.
This is a commerce transaction. If I sell an item at a profit, then turn around and buy back that item back for more than I sold it for not only have I used up any profit I made on the initial sale I'm in the hole for whatever I paid over that profit. I make no money until I sell it for a higher price than I paid and once that happens I can then count the money I sold it for over my purchase price as profit.
Ghost313
Yo Bitch Crib Chillin Out
Hell I don't know myself. Accidental.
Preach2Teach
Member
It all depends on what the man did with the goat before he sold it, did he milk the goat and make more profit? we can never know the truth until we know the facts but if we are going off the information we have then he made 20 dollars.
Sage Wonder
Scary Hours
So here is where your mistake is.
You are taking that as if he just voided the profit he made. But his money made him money. He started with 60... ended with 90. $30. He then takes the $10 he borrowed and gave it back.
His final net gain is $20.
When you say he was -10, that’s wrong. He was already +10 going into it. So him borrowing and repaying that 10 is just a placeholder.
+10
-10 +10
+10
End result, +20... cant break it down any more than that.
You are taking that as if he just voided the profit he made. But his money made him money. He started with 60... ended with 90. $30. He then takes the $10 he borrowed and gave it back.
His final net gain is $20.
When you say he was -10, that’s wrong. He was already +10 going into it. So him borrowing and repaying that 10 is just a placeholder.
+10
-10 +10
+10
End result, +20... cant break it down any more than that.
So wait it ain’t $20?
konceptjones
The one between three and three.
except all of that is wrong.
Again, this is a commerce transaction.
Bought a goat for $60 and sold it for $70. If the transaction stops there, he's made a profit of $10.
However...
He buys back the same goat, this time for more money than he made on that sale. Now he's got to add $10 to buy his goat back, meaning he loses the $10 he just made in his first sale as well as an additional $10.
At this point, the total cost of the goods (the goat) is $80. The price of the goat has been inflated $20 from it's initial $60. In order for him to recoup the profit lost as well as the extra money he had to put into it he would have to sell it for $80 to break even; he would walk away with no money lost or gained. But... He, instead, sells it for $90, which is $10 more than what he has put into this goat overall.
His overall total profit is $10.
Sage Wonder
Scary Hours
You cant ever tell old people they are wrong.
He went from 60 to 90 but his net profit is only 10. Aight.
Selling for $80 is not breaking even. He still got 60 + 10 and then the additional 10 he has to hand over. That is still, $10 more then he had before... not breaking even.
Ima need you to sleep on it gramps
He went from 60 to 90 but his net profit is only 10. Aight.
Selling for $80 is not breaking even. He still got 60 + 10 and then the additional 10 he has to hand over. That is still, $10 more then he had before... not breaking even.
Ima need you to sleep on it gramps
konceptjones
The one between three and three.
And this is why not everyone is cut out to run their own business. You need to understand wholesale transactions as well as P&L.
If he made $10 on a transaction, but had to put in $10 on top of that money in order to make a purchase, his net gain is ZERO.
In order to make money from that point he has to inflate his selling price to cover everything and walk away with something in his pocket. The $90 price point does that.
... and we wonder why so many Black businesses fail so quickly.
AZTG
OG
The answer is $20. The guy isnt losing any money from the 2nd purchase just because its the same goat. Lets break it down.
On Monday, the I notice the price of goats went down, so I buy one for $60. On Tuesday the price of goats go up, so I sell mine for $70 and make a $10 profit. That transaction ends.
On Wednesday I get news that the price of goats are gonna keep going up, so I go to the market and buy the same goat for $80. On Thursday, the price goes up and I sell it for $90. I make a $10 profit and that transaction ends.
In total I bought the goat and flipped it for $10, and then bought the goat again and flipped it for another $10.
On Monday, the I notice the price of goats went down, so I buy one for $60. On Tuesday the price of goats go up, so I sell mine for $70 and make a $10 profit. That transaction ends.
On Wednesday I get news that the price of goats are gonna keep going up, so I go to the market and buy the same goat for $80. On Thursday, the price goes up and I sell it for $90. I make a $10 profit and that transaction ends.
In total I bought the goat and flipped it for $10, and then bought the goat again and flipped it for another $10.
AZTG
OG
Yall calculating as he lost $10 on the second purchase. I dont understand how yall come that conclusion. Even if he bought the goat a 2nd time, its a seperate transaction.
If I buy something for $60, it doesnt mean I lost $60. If I sell that for $50, i lost $10. If I buy it at $60 and sell it at $70, i make $10. And then if I buy it back at $80 and sell it for $90, i made another $10.
60+80= $140. 70+90= $160. Total $160-$140=$20
If I buy something for $60, it doesnt mean I lost $60. If I sell that for $50, i lost $10. If I buy it at $60 and sell it at $70, i make $10. And then if I buy it back at $80 and sell it for $90, i made another $10.
60+80= $140. 70+90= $160. Total $160-$140=$20
konceptjones
The one between three and three.
you lost $10 when you paid the $80 for the goat. There is always a loss whenever you have to pay more for goods.
Works the same for car parts, coke, weed, tires, electronics... everything. If the cost of a good goes up, you have to mark it up accordingly in order to cover the money you will lose by purchasing it at a higher price.
Old Man Cain
OG
Lol it's $10 Jesus Christ