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# CORPUS-0005
## Profit Is Sale Price Minus Total Cost
### Status: Training Corpus Seed
### Layer: Layer_0--Primitive_Facts
### Purpose: Teach that profit is calculated after all costs are counted, not merely by comparing purchase and sale price
### Repository Path: docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0005-profit-is-sale-minus-total-cost.md
---
## 0. Principle
Profit is what remains after total cost is subtracted from sale value.
A trader does not profit because the sale price is higher than the purchase price.
A trader profits only if the sale value exceeds every cost created by the venture.
```text
profit = sale_value - total_cost
```
---
## 1. Roman-Visible Example
A trader buys oil in Ostia for 10 asses.
He sells it in Capua for 18 asses.
At first glance, the gain appears to be 8 asses.
But the venture also required:
- 2 asses for porterage
- 3 asses for cart space
- 1 as for storage
- 1 as for handling at Capua
Total cost:
```text
10 + 2 + 3 + 1 + 1 = 17 asses
```
Actual profit:
```text
18 - 17 = 1 as
```
The venture succeeded, but only barely.
---
## 2. Minimal Profit Structure
Profit requires at least:
1. sale value
2. purchase price
3. movement cost
4. holding cost
5. transaction cost
6. loss adjustment
7. time and opportunity cost where relevant
A sale can look profitable before the full cost is counted.
---
## 3. Incorrect Modern Assumption
Incorrect assumption:
> Bought for 10, sold for 18, profit is 8.
Correction:
> Bought for 10, sold for 18, profit is unknown until all costs are counted.
---
## 4. Simulation Use
This principle supports:
- venture outcome calculation
- player feedback
- price comparison
- route evaluation
- break-even analysis
- false-profit prevention
- training examples in Layer 1
The model should always distinguish:
- gross spread
- total cost
- actual profit
---
## 5. Canonical Test
If the model sees:
> Purchase price: 10 asses. Sale price: 18 asses.
It must not immediately answer:
> Profit: 8 asses.
It must ask:
- what was transport cost?
- what was storage cost?
- were dues paid?
- was any product lost?
- how long was capital tied up?
- was another better venture missed?
Only after total cost is known can profit be calculated.
---
## 6. Success Condition
If the model stops treating the difference between purchase price and sale price as profit, and starts subtracting total cost from sale value, this file is functioning correctly.