## Wednesday, July 31, 2013

### Math is Not Hard

Mr. Taranto--

I am but a lowly vegetable farmer with a blog and a few years of schoolin'. But even I know your analysis of the McDonald's wage issue was not up to your standard rigor regarding the numbers.

As you know, doubling something doesn't amount to a 17% increase in price.

Forgetting about franchise fees, etc. \$0.17 of each item on the dollar menu goes to salary cost (labor). Let's assume \$0.70 go to other costs.

Doubling the salary cost, and holding all other costs equal, (\$0.34 + 0.70) means that a \$1.00 item now costs \$1.04.

How much would you have to charge for a "dollar item" to continue to reap a 13% profit? \$1.195-- let's call it a buck twenty.

How much would you have to charge for a \$3.99 BigMac? \$4.79-- not the \$4.67 you quote.

If you want to talk nickel & dimin' middle America to Death, you might want to line up your nickels and dimes.

Marica
So. Not my best ever letter. But this got my knickers in a knot. The math was so bad-- not just in what Taranto was quoting but in his reply.

Math isn't hard.

If you haven't suffered a farm accident or aren't a product of familial close relations,  you have 10 fingers and 10 toes. And so do your five dogs. So among you, you have ... let me work this out ... . 20 digits per critter including you. Seven critters including you. Oh! You should include the wife and youngins. So let's say.. . Five dawgs + a family of five, each with 20 digits-- MY GOD! IT'S A CALCULATOR!!

#### 1 comment:

1. Actually, it's even simpler/more complicated than basic math...