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Biggs3535

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« #345 : November 28, 2012, 08:21:19 PM »

Will wonders never cease?  A third thread that PBCBoy finds himself "bored" in.  Color me stunned.

#PatheticLiar


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« #346 : November 28, 2012, 08:41:46 PM »

Will wonders never cease?  A third thread that PBCBoy finds himself "bored" in.  Color me stunned.

#PatheticLiar

yawn . .  hey Buggsy.  I noticed you are avoiding that Penn question like its a disease. . . . objective, subjective . . .lol


Dolorous Jason

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« #347 : November 28, 2012, 10:01:41 PM »

When dealing with Wrecked Ship always keep this quote in mind.

"You're more advanced than a **CENSORED**roach, have you ever tried explaining yourself to one of them?" ~ Alexander Leek

Train Wreck is a joke.

What is your point? I was wrong? Ok. You win. I was wrong.

           

John Galt?

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« #348 : November 29, 2012, 12:53:18 PM »

Of course raising wages will lead to increased prices. I've addressed that in about 3 or 4 posts now. But despite your juvenile attempts to suggest otherwise, the math is hugely important, my friend.

If the price of a Big Mac goes up from $3.00 to $4.00, then I highly doubt McDonald's would see a mass exodus of customers. Especially since increased wages means that lower income customers can now afford to eat more McDonald's than they could before, so you are actually increasing McDonald's potential consumer base, not decreasing it.

Now if you are claiming that a Big Mac would increase from $3.00 to $6.00 as JG? claims it will, then yeah, that might have a more adverse affect on demand, but I highly question the math associated with that assertion. Not only does it not make sense because minimum wage labor doesn't add up to that high a percentage of McDonald's operating costs, but you are also ignoring other major factors associated with pricing beyond just labor costs.


I NEVER claimed a Big Mac would jump from $3 to $6!!! I never meant to imply any doubling of prices. The "Dollar Menu" is mostly stuff well over $1 and is just a marketing phrase. But if the majority of items on the "Dollar Menu" went from $1.69 to $2.05, don't you think everyone would start calling it the "Two Dollar Menu"??

My point was you are proposing an increase in labor costs of OVER 50%, and that would force an increase in prices. My guess would be an increase of around 30%

Managerial Accounting 3301:

If a $10 order has a food cost of 20% or $2.00 and labor costs of 30% or $3 then the variable margin is 50%.

If labor costs increase from 30% to 45% ($3 to $4.50) then to maintain the margin prices have to rise to $13

Now if consumer has a choice of eating at home for @ $7 or getting it "to go" for $10, he thinks the convenience is worth $3. But if the price rises to $13 then is the convenience worth $6?? To some, no. So fewer customers.





spartan

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« #349 : November 29, 2012, 01:29:49 PM »



If the price of a Big Mac goes up from $3.00 to $4.00, then I highly doubt McDonald's would see a mass exodus of customers. Especially since increased wages means that lower income customers can now afford to eat more McDonald's than they could before, so you are actually increasing McDonald's potential consumer base, not decreasing it.


I am sorry, did you just have a brain fart when you wrote this? Are you really saying that if McDonalds increase their salaries, this will be offset because their employees will buy more burgers?

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« #350 : November 29, 2012, 01:54:42 PM »



If the price of a Big Mac goes up from $3.00 to $4.00, then I highly doubt McDonald's would see a mass exodus of customers. Especially since increased wages means that lower income customers can now afford to eat more McDonald's than they could before, so you are actually increasing McDonald's potential consumer base, not decreasing it.


I am sorry, did you just have a brain fart when you wrote this? Are you really saying that if McDonalds increase their salaries, this will be offset because their employees will buy more burgers?

Not just their employees. Wal-Mart's employees, Publix employees, Piggly Wiggly employees, Long John Silver's employees, Toys R Us employees, Target employees, ect, etc.


Chief Joseph

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« #351 : November 29, 2012, 02:05:09 PM »


Are they going to start eating more in general, or is some other party losing out?

You really haven't thought this out well.

Illuminator is a good poster. He sticks to his guns and makes good points. Some don\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'t like that.

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« #352 : November 29, 2012, 03:20:10 PM »

Of course raising wages will lead to increased prices. I've addressed that in about 3 or 4 posts now. But despite your juvenile attempts to suggest otherwise, the math is hugely important, my friend.

If the price of a Big Mac goes up from $3.00 to $4.00, then I highly doubt McDonald's would see a mass exodus of customers. Especially since increased wages means that lower income customers can now afford to eat more McDonald's than they could before, so you are actually increasing McDonald's potential consumer base, not decreasing it.

Now if you are claiming that a Big Mac would increase from $3.00 to $6.00 as JG? claims it will, then yeah, that might have a more adverse affect on demand, but I highly question the math associated with that assertion. Not only does it not make sense because minimum wage labor doesn't add up to that high a percentage of McDonald's operating costs, but you are also ignoring other major factors associated with pricing beyond just labor costs.


I NEVER claimed a Big Mac would jump from $3 to $6!!! I never meant to imply any doubling of prices. The "Dollar Menu" is mostly stuff well over $1 and is just a marketing phrase. But if the majority of items on the "Dollar Menu" went from $1.69 to $2.05, don't you think everyone would start calling it the "Two Dollar Menu"??

My point was you are proposing an increase in labor costs of OVER 50%, and that would force an increase in prices. My guess would be an increase of around 30%

Managerial Accounting 3301:

If a $10 order has a food cost of 20% or $2.00 and labor costs of 30% or $3 then the variable margin is 50%.

If labor costs increase from 30% to 45% ($3 to $4.50) then to maintain the margin prices have to rise to $13

Now if consumer has a choice of eating at home for @ $7 or getting it "to go" for $10, he thinks the convenience is worth $3. But if the price rises to $13 then is the convenience worth $6?? To some, no. So fewer customers.

Again, you are assuming a total labor cost increase of 50% (which isn't accurate in and of itself. Going from $7.25 to $11 is a 34% increase, not a 50% increase). But that aside, not every McDonald's worker is paid $7.25 an hour. Like I said, the McDonald's near me routinely has signs posted that they are hiring, starting out at $9.25 or $9.50 an hour. A minimum wage bump would only be a 14% increase for stores similar to this one. We agree, prices will increase, but I still think you are overestimating the amount of increase.
« : November 29, 2012, 03:21:59 PM CBWx2 »


BucNY

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« #353 : November 29, 2012, 03:25:54 PM »


Are they going to start eating more in general, or is some other party losing out?

You really haven't thought this out well.

No, no he has not. In fact it might be the dumbest thing I've read all day.

CBWX2, you could have a career in politics. I haven't seen such misguided info twisted and contorted since Obama explained how Obamacare was actually going to save money!

\\\\\\\"This forum needs a poster like BucNY now more than ever\\\\\\\"
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John Galt?

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« #354 : November 29, 2012, 03:33:03 PM »

Of course raising wages will lead to increased prices. I've addressed that in about 3 or 4 posts now. But despite your juvenile attempts to suggest otherwise, the math is hugely important, my friend.

If the price of a Big Mac goes up from $3.00 to $4.00, then I highly doubt McDonald's would see a mass exodus of customers. Especially since increased wages means that lower income customers can now afford to eat more McDonald's than they could before, so you are actually increasing McDonald's potential consumer base, not decreasing it.

Now if you are claiming that a Big Mac would increase from $3.00 to $6.00 as JG? claims it will, then yeah, that might have a more adverse affect on demand, but I highly question the math associated with that assertion. Not only does it not make sense because minimum wage labor doesn't add up to that high a percentage of McDonald's operating costs, but you are also ignoring other major factors associated with pricing beyond just labor costs.


I NEVER claimed a Big Mac would jump from $3 to $6!!! I never meant to imply any doubling of prices. The "Dollar Menu" is mostly stuff well over $1 and is just a marketing phrase. But if the majority of items on the "Dollar Menu" went from $1.69 to $2.05, don't you think everyone would start calling it the "Two Dollar Menu"??

My point was you are proposing an increase in labor costs of OVER 50%, and that would force an increase in prices. My guess would be an increase of around 30%

Managerial Accounting 3301:

If a $10 order has a food cost of 20% or $2.00 and labor costs of 30% or $3 then the variable margin is 50%.

If labor costs increase from 30% to 45% ($3 to $4.50) then to maintain the margin prices have to rise to $13

Now if consumer has a choice of eating at home for @ $7 or getting it "to go" for $10, he thinks the convenience is worth $3. But if the price rises to $13 then is the convenience worth $6?? To some, no. So fewer customers.

Again, you are assuming a total labor cost increase of 50% (which isn't accurate in and of itself. Going from $7.25 to $11 is a 34% increase, not a 50% increase).

Liberal Math???????

11-7.25= 3.75

3.75/7.25= 0.51724 or 51.7%


But that aside, not every McDonald's worker is paid $7.25 an hour. Like I said, the McDonald's near me routinely has signs posted that they are hiring, starting out at $9.25 or $9.50 an hour. A minimum wage bump would only be a 14% increase for stores similar to this one. We agree, prices will increase, but I still think you are overestimating the amount of increase.


$9.50 to $11 is 15.78% but at least you are getting closer. Still would have gotten you an F in most finance or accounting classes


BucNY

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« #355 : November 29, 2012, 03:36:43 PM »

Fast food is garbage and isn't worth the money we currently pay for it. I eat it on occasion about once every other month. Prices have been going up as it is, any increase immediately stop me from eating that crap and i'll be better off for it.

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VinBucFan

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« #356 : November 29, 2012, 03:46:11 PM »

CBWX2, you could have a career in politics.

"Intellectual dishonesty, meanwhile, is so built into the Washington culture that you have to force yourself to notice it. It even has a more familiar and less pejorative name: “spin.” Spin is not just another word for lies. A better definition might be “indifference to the truth.”

Read more: http://www.politico.com/news/stories/1010/43107.html#ixzz2De9Us6wZ

 ;)


CBWx2

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« #357 : November 29, 2012, 04:22:27 PM »

Of course raising wages will lead to increased prices. I've addressed that in about 3 or 4 posts now. But despite your juvenile attempts to suggest otherwise, the math is hugely important, my friend.

If the price of a Big Mac goes up from $3.00 to $4.00, then I highly doubt McDonald's would see a mass exodus of customers. Especially since increased wages means that lower income customers can now afford to eat more McDonald's than they could before, so you are actually increasing McDonald's potential consumer base, not decreasing it.

Now if you are claiming that a Big Mac would increase from $3.00 to $6.00 as JG? claims it will, then yeah, that might have a more adverse affect on demand, but I highly question the math associated with that assertion. Not only does it not make sense because minimum wage labor doesn't add up to that high a percentage of McDonald's operating costs, but you are also ignoring other major factors associated with pricing beyond just labor costs.


I NEVER claimed a Big Mac would jump from $3 to $6!!! I never meant to imply any doubling of prices. The "Dollar Menu" is mostly stuff well over $1 and is just a marketing phrase. But if the majority of items on the "Dollar Menu" went from $1.69 to $2.05, don't you think everyone would start calling it the "Two Dollar Menu"??

My point was you are proposing an increase in labor costs of OVER 50%, and that would force an increase in prices. My guess would be an increase of around 30%

Managerial Accounting 3301:

If a $10 order has a food cost of 20% or $2.00 and labor costs of 30% or $3 then the variable margin is 50%.

If labor costs increase from 30% to 45% ($3 to $4.50) then to maintain the margin prices have to rise to $13

Now if consumer has a choice of eating at home for @ $7 or getting it "to go" for $10, he thinks the convenience is worth $3. But if the price rises to $13 then is the convenience worth $6?? To some, no. So fewer customers.

Again, you are assuming a total labor cost increase of 50% (which isn't accurate in and of itself. Going from $7.25 to $11 is a 34% increase, not a 50% increase).

Liberal Math???????

11-7.25= 3.75

3.75/7.25= 0.51724 or 51.7%


But that aside, not every McDonald's worker is paid $7.25 an hour. Like I said, the McDonald's near me routinely has signs posted that they are hiring, starting out at $9.25 or $9.50 an hour. A minimum wage bump would only be a 14% increase for stores similar to this one. We agree, prices will increase, but I still think you are overestimating the amount of increase.


$9.50 to $11 is 15.78% but at least you are getting closer. Still would have gotten you an F in most finance or accounting classes

Math error on my part. But what about the other point I made? By your own admission, only a small segment of the workforce makes the minimum wage. The median income of a food service employee is $8.90 an hour, not $7.25. So we are talking about on average a labor cost increase of 24%. Still below a livable wage, but also far below a 52% labor cost increase.


CBWx2

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« #358 : November 29, 2012, 04:23:41 PM »


Are they going to start eating more in general, or is some other party losing out?

You really haven't thought this out well.

No, no he has not. In fact it might be the dumbest thing I've read all day.

CBWX2, you could have a career in politics. I haven't seen such misguided info twisted and contorted since Obama explained how Obamacare was actually going to save money!

Where is the empirical evidence that raising the minimum wage in the past has lead to a decrease in demand or an increase in the unemployment rate?


Dolorous Jason

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« #359 : November 29, 2012, 04:44:23 PM »


Are they going to start eating more in general, or is some other party losing out?

You really haven't thought this out well.

No, no he has not. In fact it might be the dumbest thing I've read all day.

CBWX2, you could have a career in politics. I haven't seen such misguided info twisted and contorted since Obama explained how Obamacare was actually going to save money!

Gotta love the 3 stooges : CBW , Durango , and Train Wreck. They provide hours of comedy on the pirate's cove.


What is your point? I was wrong? Ok. You win. I was wrong.

           
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