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Politics : Formerly About Advanced Micro Devices
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To: J_F_Shepard who wrote (900265)11/12/2015 11:01:40 PM
From: i-node  Read Replies (2) of 1575394
 
No McD's on the planet operates with 15 employees. But I'll answer the question.

An increase of 50c/hr has an actual cost of closer to 80c/hr in real costs, and an employee equivalent is 2080 hours, so each employee cost increases roughly $1600/y, about 40 employee equivalents brings the total to roughly $64,000/year, which is an increase in costs of roughly 9.2% in operating costs, requiring an increase in revenue of roughly 23%. Since this is done in my head without the benefit of a calculator, I would put it at a 20-25% increase in the price of a burger.

Now, if you think that doesn't matter, you'd be dead wrong, since we know from ample research that the price elasticity for fast food is just about as high as it get: when the price goes up 10%, demand drops 10% within the relevant range. When demand drops, what happens?

PEOPLE GET LAID OFF.

You figure it out from there.
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