Trump, the dumbest man on earth, just doubled down on his dumb. - eviltoast
  • Sludgeyy@lemmy.world
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    12 hours ago

    No, because (1 + tariff) isn’t enough to keep up with the tariff because as the price goes up, the tariff also goes up.

    Like in the example going from $5 to $6.25 (5 × (1+.25)). Would result in 31 cents less per bottle.

    It needs to be ~33% more or $6.67 for the syrup company to keep the same profit with a 25% tariff.

    Final Price × Tariff % = Tariff Amount

    Final Price - Tariff Amount = Cost of Good Sold

    Cost of Good Sold - Expenses = Profit

    So if you need $2 profit

    $2 = (Final Price - (Final Price × Tariff %)) - Expenses

    $2 = (X - (X×.25)) - $3

    $5 = X - .25X

    $5 = .75X

    X = $6.67

    Formula would be

    Profit = (Final Price - (Final Price × Tariff %)) - Expenses