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<p>[QUOTE="medoraman, post: 8468927, member: 26302"]I will be careful, but would like to apolitical respond to this. Both can be true. "Sell at a loss but make up for it with volume" can be a 100% true statement. Any production facility expects X amount of sales, and allocates overhead and burden based upon that expectation. Let's say you sell it for $10, and your all in cost is $8. However, $2 of that is overhead. If you sell at $7 you would say it's a loss, but if you sell 3 times what is normal you would profit overall. People who make fun of this saying do not understand the intricacies of cost accounting.</p><p><br /></p><p>Same for tax rates. Many, many times when the first year after a tax cuts yields greatly more tax revenue than the year under higher tax rates. It's very common. You can argue theoretically it's impossible, but usually happens.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 8468927, member: 26302"]I will be careful, but would like to apolitical respond to this. Both can be true. "Sell at a loss but make up for it with volume" can be a 100% true statement. Any production facility expects X amount of sales, and allocates overhead and burden based upon that expectation. Let's say you sell it for $10, and your all in cost is $8. However, $2 of that is overhead. If you sell at $7 you would say it's a loss, but if you sell 3 times what is normal you would profit overall. People who make fun of this saying do not understand the intricacies of cost accounting. Same for tax rates. Many, many times when the first year after a tax cuts yields greatly more tax revenue than the year under higher tax rates. It's very common. You can argue theoretically it's impossible, but usually happens.[/QUOTE]
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