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# CORPUS-0002
## One-As Margin And Break-Even
### Status: Training Corpus Seed
### Layer: Layer_1--Worked_Examples
### Purpose: Teach that a tiny sale margin can disappear once small costs, delay, or loss are counted
### Repository Path: docs/training/corpus/Layer_1--Worked_Examples/CORPUS-0002-one-as-margin-and-break-even.md
---
## 0. Scenario
A trader buys a small good in Ostia for 3 asses.
He expects to sell it in Capua for 4 asses.
At first glance, the venture appears profitable.
The expected spread is only 1 as.
A one-as margin is fragile.
Almost any additional cost can erase it.
---
## 1. Known Facts
| Fact | Value |
|---|---:|
| Origin | Ostia |
| Destination | Capua |
| Purchase price | 3 asses |
| Expected sale price | 4 asses |
| Gross spread | 1 as |
---
## 2. First Incorrect Calculation
A weak model may calculate:
```text
4 asses - 3 asses = 1 as profit
```
This is incomplete.
The calculation ignores every cost required to move, hold, protect, or sell the good.
---
## 3. Break-Even Point
The trader breaks even only if total cost is 4 asses or less.
```text
sale value = 4 asses
break-even total cost = 4 asses
```
Since the purchase price is already 3 asses, the trader can spend only 1 additional as before profit disappears.
```text
maximum additional cost before loss = 1 as
```
---
## 4. Cost Variants
### Variant A — No Added Cost
```text
purchase price = 3 asses
sale value = 4 asses
profit = 1 as
```
The venture succeeds.
### Variant B — One Additional As
```text
purchase price = 3 asses
handling = 1 as
total cost = 4 asses
sale value = 4 asses
profit = 0
```
The venture breaks even.
### Variant C — Two Additional Asses
```text
purchase price = 3 asses
handling + delay = 2 asses
total cost = 5 asses
sale value = 4 asses
loss = 1 as
```
The venture fails.
---
## 5. Why Small Margins Matter
A small margin is not useless.
It may still be acceptable if:
- the trader is already sending a cart
- the good fills unused space
- the sale builds trust
- the buyer may become a repeat contact
- the good is part of a larger bundle
- the trader has no better use for the coin
But a small margin is dangerous if:
- transport must be paid separately
- storage is uncertain
- delay is likely
- the destination price is stale
- the buyer may refuse
- rivals may arrive first
---
## 6. Correct Model Behavior
The model should reason:
- a one-as spread is not automatically profit
- break-even depends on total cost
- tiny margins are fragile
- low-value goods may still matter when bundled
- context determines whether small gain is worth risk
---
## 7. Incorrect Model Behavior
The model should not:
- treat every positive spread as safe profit
- ignore small costs because they look minor
- assume one-as profit is always worth pursuing
- assume tiny trades are meaningless
- ignore bundling, repeat contact, or unused capacity
---
## 8. Layer-0 Concepts Used
This example uses:
- `CORPUS-0002-goods-have-local-prices`
- `CORPUS-0003-money-has-purchasing-power`
- `CORPUS-0004-cost-includes-more-than-purchase-price`
- `CORPUS-0005-profit-is-sale-minus-total-cost`
- `CORPUS-0006-delay-is-economic-cost`
- `CORPUS-0012-every-venture-risks-loss`
---
## 9. Success Condition
If the model sees a one-as spread and immediately asks whether total cost leaves any margin, this file is functioning correctly.