Initial commit
This commit is contained in:
@@ -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.
|
||||
Reference in New Issue
Block a user