I look at this way, business should never be garanteed a profit. Profit is what is left when all facets come together. When I see fixed cost line items, I see a company that is not confident that they can turn a profit the old fashioned way, so they "gaurantee" that they will turn a profit by quoting a "base" price, but then adding fixed and variable cost on to that after the fact. It is a form of "bait and switch" if you think about it. I would like to take this cast of business owners and accountants in to a restaurant where they are going to pay for their own food. Have the menu show the prices. When they get their final bills, there would be fixed and variable add on's for napkins, cleaning the dishes and silverwear, steam cleaning the carpet, etc. Can you imagine how mad they would be? Has anyone noticed the absurd profit margins on iced tea? It cost maybe a nickle or so a glass including ice. Let's assume someone gets 4 refills.(most folks do not drink that much) We are not at half a dollar in cost. So double that and $1.00 would be more than sufficient profit. Some places charge over $2.00. I get ice water most of time now.
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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