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<p>[QUOTE="cubenewb, post: 1074895, member: 25644"]Naturally, the total "penalty" is some value between $0.00 and $0.99 ; therefore using a percentage relative to the total bill is extremely misleading, since as the bill gets higher, the "penalty" remains at a number less than 1.0 that gets increasingly insignificant as the bill gets larger. The statement I bolded is incorrect; the penalty is not related to how "great" your bill is, as the profit structure is cyclical (i.e. a $100.00 restaurant bill yields a perfect exchange whereas a $101.00 tally requires the buyer to fork over another 94 cents, both prices being before taxes). Your assertion is only true for the initial interval from $0.01 to approximately $16.00, because that represents one cycle and in that pattern the highest 'penalties' are dealt at the lower prices. It is because of this that a $1.00 bill has the same penalty as a $51.00 bill, a $2 and a $52 have the same, a $3 and a $53 have the same, and so on.[/QUOTE]</p><p><br /></p>
[QUOTE="cubenewb, post: 1074895, member: 25644"]Naturally, the total "penalty" is some value between $0.00 and $0.99 ; therefore using a percentage relative to the total bill is extremely misleading, since as the bill gets higher, the "penalty" remains at a number less than 1.0 that gets increasingly insignificant as the bill gets larger. The statement I bolded is incorrect; the penalty is not related to how "great" your bill is, as the profit structure is cyclical (i.e. a $100.00 restaurant bill yields a perfect exchange whereas a $101.00 tally requires the buyer to fork over another 94 cents, both prices being before taxes). Your assertion is only true for the initial interval from $0.01 to approximately $16.00, because that represents one cycle and in that pattern the highest 'penalties' are dealt at the lower prices. It is because of this that a $1.00 bill has the same penalty as a $51.00 bill, a $2 and a $52 have the same, a $3 and a $53 have the same, and so on.[/QUOTE]
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