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Pastimes : Plastics to Oil - Pyrolysis and Secret Catalysts and Alterna
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To: arvitar who wrote (25093)5/26/2012 12:36:13 PM
From: Steady_onRead Replies (3) of 53574
 
It jives quite well.

If your house payment is $5000.00 month and you sell hot dogs for a living at $5.00 a hot dog. Your cost basis is $1.00 per hot dog so you make $4.00 per hot dog.

If you sell 100 hot dogs in a month, you have made $400. That $400 doesn't cover the house payment and you are $4600.00 in debt.

Once you get the production of hot dogs worked out and then sell 10,000 hot dogs in a month, you have made $40,000 which covers the house payment and pays back debt.

The cost basis hasn't changed. Just the production amount.
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