OT - $4/gal Gas Threshold Crossed - Dam Breaking

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Leon wrote:

"Gross profit is profit before Selling, General and Administrative costs (SG&A), like depreciation and interest; it is the Sales less direct Cost of Goods (or services) Sold (COGS),
Net profit after tax is after the deduction of either corporate tax (for a company) or income tax (for an individual)."
Source:
http://en.wikipedia.org/wiki/Profit
Wages fall into the COGS category.
--
Jack Novak
Buffalo, NY - USA
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No, I'm sorry to say, Gross profit is profit of the pieces sold less the cost of the good. If you sell a part for $5 and your cost of the part is $4 your Gross Profit is $1. Untill you sell you have no profit. You may have an increased value in inventory but that is added in later to increase the Net Profit.

From you source above,
In accounting, Gross profit or sales profit or gross operating profit is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments.
Net sales are calculated:
Net sales = Sales - Sales returns and allowances Gross profit is found by deducting the cost of goods sold:
Gross profit = Net sales - Cost of goods sold Gross profit should not be confused with net income:
Net income = Gross profit - Total operating expenses
In business and finance accounting, net profit is equal to the gross profit minus overheads minus interest payable plus/minus one off items for a given time period (usualy: accounting period).
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Leon wrote:

I think you're confusing gross receipts with gross profits.
From the IRS web site: http://www.irs.gov/publications/p334/ch07.html
"7. Figuring Gross Profit
Table of Contents
* Introduction * Items To Check * Testing Gross Profit Accuracy o Example. * Additions to Gross Profit
Introduction
After you have figured the gross receipts from your business (chapter 5) and the cost of goods sold (chapter 6), you are ready to figure your gross profit. You must determine gross profit before you can deduct any business expenses. These expenses are discussed in chapter 8.
If you are filing Schedule C-EZ, your gross profit is your gross receipts plus certain other amounts, explained later under Additions to Gross Profit.
Businesses that sell products. If you are filing Schedule C, figure your gross profit by first figuring your net receipts. Figure net receipts on Schedule C by subtracting any returns and allowances (line 2) from gross receipts (line 1). Returns and allowances include cash or credit refunds you make to customers, rebates, and other allowances off the actual sales price.
Next, subtract the cost of goods sold (line 4) from net receipts (line 3). The result is the gross profit from your business."
Note the cost of good sold is subtracted from the net receipts to determine the gross profit.
And http://www.irs.gov/publications/p334/ch06.html
"Figuring Cost of Goods Sold on Schedule C Lines 35 Through 42
Figure your cost of goods sold by filling out lines 35 through 42 of Schedule C. These lines are reproduced below and are explained in the discussion that follows.
35     Inventory at beginning of year. If different from last year's          closing inventory, attach explanation      36     Purchases less cost of items withdrawn for personal use      37     Cost of labor. Do not include any amounts paid to yourself      38     Materials and supplies      39     Other costs      40     Add lines 35 through 39      41     Inventory at end of year      42     Cost of goods sold. Subtract line 41 from line 40.         Enter the result here and on page 1, line 4"
Note line #37
--
Jack Novak
Buffalo, NY - USA
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And what cracks me up is the oil companies are trying to say that this is the world market price. SA in the middle east is paying less than 40 cents per gallon. I guess if the American oil companies were not selling gasoline to other countries and also buying gasoline from other countries there would not be as many mark-ups.
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Oil companies are only part of the equation though. Speculators are buying and selling amongst themselves and driving up prices while making millions at our expense. Same with de-regulated electricity.
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wrote in message

Exactly!
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wrote in message

It's a result of many factors, but "supply and demand" is indeed part of the current scene just from the fact that global production levels have dropped in the last few years.
That said, there is a _lot_ of crude sitting in tankers offshore in "storage" (1980's deja vu?), so much so that tankers are in short supply as storage containers, and Iran, whose oil is not the best refinery product, is the leader of this pack. This, in my mind, _is_ the real reason why Bush was blown off by the Saudi's recently, but not something you will see in the media.
What is also notable is that you don't see the executives of big oil companies scrambling to drill at these prices, which is strange as hell to someone who has BTDT, albeit in a small domestic sense.
Whatever it is we'll sooner or later see. Because, if there is indeed a speculative "index trader crude bubble, and it bursts as all bubbles are wont and the price of crude _plummets_, that will be prima facie evidence of the current record prices NOT being driven by "supply and demand".
In that event, it would be high time to inject some prudent, and possibly global, regulatory restraints on the practice of commodities index trading ... providing you can find an un-buyable politician with the balls/will to lead the charge, if there is such a beast.
IMO, and in any event, and at the very least, some 'transparency' needs to be regulated into the current practice of 'commodities index trading'.
--
www.e-woodshop.net
Last update: 5/14/08
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The government subsidizes gasoline in Saudi. Without that, it would be the same as anywhere else. -- Doug
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Douglas Johnson wrote:

The situation is similar in Venezuela, where gas is subsidized heavily. Ostensibly it's to help out the poorer people, but most of them don't own a vehicle and it's mostly the middle and upper classes that benefit.
Chris
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On Thu, 29 May 2008 14:08:55 -0600

There are two factors for gas prices:
First:In 2000 Bill Clinton signed a Bill the Commodities Futures Modernization Act (that exempted from regulation energy trading on electronic platforms) with the "Enron Loophole" enclosed by Phil Gramm. It allowed trading to shift from the regulated NYMEX to ICE (Intercontinental Exchange) and unregulated Exchange. As ENRON was now allowed to trade Utilities, Oil is now in play! As Energy prices went through the roof, the Bush Administration strongly supported and backed ENRON.
In reality futures trading in an unregulated exchange isn't the problem itself.
Second: President Bush decided to invade a large Oil rich nation for apparently no valid reason. This act created technically the "shortage", of the supply and demand mindest of economics. This in conjuction with the ENRON Loophole, allowed Speculators and Wall St. Hedge Funds to go hogwild. When Goldman Sachs speculates oil may reach $200 a barrel by December... only put's more money in their pockets and thus out of your pocket into Wall St's.
Please Note that the Current Farm Bill Vetoed by President Bush in May and also opposed by Sen. McCain, would have ended the ENRON Loophole. It's apparent that when you family business is the oil business, profit stands before the people!
BUT!
What's actually is far far worse is... Carbon Credits! Now "Green" is a hot item and technically a good thing for the world overall. What no one wants you to know is that the Carbon Credits are traded unregulated.
Yup! This can raise the prices of EVERY CARBON BASED PRODUCT and tax even HUMANS themselves. Wood, food, fuels everything will be basically Carbon taxed and then speculated on credit pricing just as oil is!
Things are bad now will most certainly get FAR FAR Worse!
--
Vz < snipped-for-privacy@none.com>

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On Tue, 10 Jun 2008 03:28:59 +0000, Vz wrote:

Act (that exempted from regulation energy trading on electronic platforms) with the "Enron Loophole" enclosed by Phil Gramm. It allowed trading to shift from the regulated NYMEX to ICE (Intercontinental Exchange) and unregulated Exchange. As ENRON was now allowed to trade Utilities, Oil is now in play! As Energy prices went through the roof, the Bush Administration strongly supported and backed ENRON. I don't know if it's my news reader or your writer, but the above line comes out as one long, long line when I read it. If others have the same problem you might want to check your settings.
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Larry Blanchard wrote:

It looked fine when I read it initially, but when I went to write this reply his statement became one single line without wrapping. I had to tell my reader to rewrap the message.
I'm guessing it's a combination of both his writer and your reader.
Chris
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Though we're lucky enough to live in Mexico and complain about unleaded going up to $2.30 a Gal, we all make trips to the States.. My neighbor just got back from Fresno, the land of $5.50 a gal diesel.. He's been paying $2.10 here..
We have to go to California on the July 4th weekend for our daughter's wedding and expect the fuel cost to be more than the room charge for 2 nights...
mac
Please remove splinters before emailing
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Hey Mac Do you know if Mexico subsidizes the price of gas? A few of the oil exporting countries sell gas locally well below world market prices (keeps the natives happy). Rod
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charlieb wrote:

How many MPG do you get in that Miata? I've been thinking about one for a long time.
--
Mortimer Schnerd, RN
mschnerdatcarolina.rr.com
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Rather than blame US car makers, blame the people that insist they need those big vehicles and buy them so they can go to the grocery store for a loaf of bread. . Don't forget to add the Toyota V-8 5+ liter too. No one forces us to buy gas guzzlers.
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wrote in message

gas mileage with 150 less hp. The V6 version of my Toyota got 2 mpg better in town and no better on the highway. The V8 had a much bigger rebate than the V6 did and will take about 100 fill ups before the V6 starts to be cheaper to operate. I fill up about 17 times a year.
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wrote:

I have a Tundra V8. It took $78 to fill up yesterday, but I plan on making that last a few weeks. Actually I need a truck to move furniture, wood, landscaping material, etc but have cut out restaurants, vacation and visits to help offset the cost. We want big vehicles, but 40 mpg too! I am seeing more bicycles lately, which is a very good thing for keeping in shape.
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What I want is a more fuel efficient LAWN MOWER. I've got around 4 acres to mow, and it takes 4-5 gallons a week to do it. I wonder if I can get more grass mowed per gallon by putting the next size larger deck on it... Probably not.
Puckdropper
--
If you're quiet, your teeth never touch your ankles.

To email me directly, send a message to puckdropper (at) fastmail.fm
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