From de8aef3ef6b6ea97c5c3bb058d1c1e2752bc102f Mon Sep 17 00:00:00 2001 From: TheRON Date: Thu, 30 Apr 2026 05:03:40 -0400 Subject: [PATCH] Initial commit --- ...US-0005-profit-is-sale-minus-total-cost.md | 128 ++++++++++++++++++ 1 file changed, 128 insertions(+) create mode 100644 docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0005-profit-is-sale-minus-total-cost.md diff --git a/docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0005-profit-is-sale-minus-total-cost.md b/docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0005-profit-is-sale-minus-total-cost.md new file mode 100644 index 0000000..ed5334b --- /dev/null +++ b/docs/training/corpus/Layer_0--Primitive_Facts/CORPUS-0005-profit-is-sale-minus-total-cost.md @@ -0,0 +1,128 @@ +# 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.