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Pastimes : Plastics to Oil - Pyrolysis and Secret Catalysts and Alterna -- Ignore unavailable to you. Want to Upgrade?

To: arvitar who wrote (25093)5/26/2012 12:36:13 PM
From: Steady_onRead Replies (3) | Respond to 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.



To: arvitar who wrote (25093)5/26/2012 2:16:07 PM
From: donpatRead Replies (1) | Respond to of 53574
 
I think it really costs next to nothing to produce a barrel of oil/whatever from cost of materials and the $10 is the overhead - like $37 Million amortized over 8 years - the life of the machine, labour, office expenses, IR expenses, etc, interest, taxes, bonuses and such - nothing that $10 shouldn't cover. $0.00/barrel would have looked silly while $10 looks real good and believable.


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