Well over 50 Cents over Breakeven Point

As I'm writing this, I'm listening to some Rap music and its lyrics remind me of 2 key business in our society: Prostitution and drug trafficking. Forgetting the drugs, I'm going to focus on what our bro 50 Cent teaches us about the PIMP business.




We can see him driving around in a Rolls Royce, so business must be going well. Breakeven point must be well behind at this point, but let's discuss what he needs for his business to be profitable: He must look rich (nice car, jewelry…) he must have some kind space for the “magic to happen” as well as “warehousing” for the service providers to rest between their shifts.
This means Mr. Fifty has a lot of fixed cost to get his business running and in order of offsetting these costs, assuming a worker can only service a specific number of customers per day, he needs to have several workers working for him.
When this minimum number is passed, he will have a positive operating income, and the more workers he has, the more this operating income can grow.







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