Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (456494)	2/13/2009 9:17:33 PM
From: TopCat	2 Recommendations Read Replies (1) \| Respond to of 1575188

"Quite a bit. The higher the profit margin, the lower the percentage that go to wages. Don't you understand anything about business?" I am in business and you are totally wet!

To: combjelly who wrote (456494)	2/13/2009 10:21:05 PM
From: Tenchusatsu	1 Recommendation Read Replies (1) \| Respond to of 1575188

CJ, > The higher the profit margin, the lower the percentage that go to wages. Really? I should go work for AMD then ... Tenchusatsu

To: combjelly who wrote (456494)	2/13/2009 11:10:44 PM
From: i-node	Read Replies (1) \| Respond to of 1575188

Quite a bit. The higher the profit margin, the lower the percentage that go to wages. Don't you understand anything about business? I suspect you've re-thought this statement somewhat. You ought to know better than to generalize like that. I once had a client who made a fortune repairing residential foundations in Texas. Other than having to pay guys to dig holes and fill them with concrete they mixed on site, they really didn't have much expense to speak of. You think your claim holds for that business?

To: combjelly who wrote (456494)	2/16/2009 7:40:31 PM
From: TimF	Respond to of 1575188

The higher the profit margin, the lower the percentage that go to wages. That would be automatically true only if wages where the only cost (and even then it would be more accurately sated as "the lower the percentage that goes to wages, the higher the profit margin). Also the issue raised was the number of employees, not employee costs as a percentage of profit. You can't determine the number of employees just by looking at the profit margin (or even the profit margin, plus overall revenue). Even if you knew the percentage paid to employees (which you don't know, just from the profit margin, as their are other costs), you might have more lower wage employees, or very few higher wage employees.