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