Recyclersteve wrote:knibloe wrote:beauanderos wrote:they don't have some way of testing them when received from the guys who are sending them? High dollar comparitors?
It wouldn't matter. Lets say I make a "dime" that has the exact same composition. Then I mutilate it beyond good recognition. I could make 88% profit margin because it only costs $.012 to make a "dime".
If you can get 10 cents for a counterfeit (same composition as a normal coin) dime that costs you 1.2 cents to make, your profit is a whopping 733%, not 88%. 100 divided by 12 and then subtract the basis of 1.
I didn't say the "profit" was 88%. I said that the "profit margin" was 88%. Please see below.
Profit Margin:
A measure of how well a company controls its costs. It is calculated by dividing a company's profit by its revenues and expressing the result as a percentage. The higher the profit margin is, the better the company is thought to control costs. Investors use the profit margin to compare companies in the same industry and well as between industries to determine which are the most profitable. Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
If the fake dime costs sells for a $.10 than revenue is $.10 It it costs $0.12 to make, the profit is $0.88. .088 (profit) divided by Revenue $.10 = 88% profit margin!!