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This is complete rubbish and shouldn't have made HN. Is it even for real? I mean, yes, IF your employees cost 100k/year on average, then you need (100k * numbe
by feral 16y ago
This is complete rubbish and shouldn't have made HN.
Is it even for real?
I mean, yes, IF your employees cost 100k/year on average, then you need (100k * number_employees) to break even.
(Thats what 'average' means!)
So IF you break even, your revenue must be at least that. (thats what 'break even' means.)
But theres no information here! That's not a bound, or estimate of your revenue, its just the amount you need to pay your staff, if your staff have average salary.
This 'formula' makes no allowance for some companies having a higher average salary than others. It makes no allowance for some companies having a higher profit margin than others.
Nothing to see here; move along.
- audiomicro 16y agoit's an ESTIMATE! simply adjust upwards for industries where the average salary is over $40k. How about this....ANNUAL REVENUE = NUMBER OF EMPLOYEES X AVERAGE SALARY OF EMPLOYEES X 2.5 . Try it now.