The Economics of a Q7 WEPS factory under different work taxes

Day 2,107, 05:18 • Published in Ireland Ireland • by Releasethe Krakken

Sorry my article have no tits just facts.

The reason I wrote my 2 articles is because usually when there is no action or negative action a new player will write an article. His/her perspective is quite different from old hands who have been building up quite an empire. His article gets voted up and is seen by many as the solution whereas it seldom is. Therefore we need to take out our kalkulators and start crunching them numbers.

Background

Work Tax = Average Wage * Work tax percentage:36.16

= 36.16(the reason for the high work taxes) * work tax percentage


So 1% - 0.36
2% - 0.72
3% - 1.08
4% - 1.45
5% - 1.81

per factory

Current price of 1 Q7 WEP = 13 IEP

Total production per 1 factory = 12 Weapons

Gross Income per factory = 12 * 13 = 156 IEP

Some Scenarios:

A scenario is often used in program design to work out what will be the effect if different users are faced with a program.

WITHOUT WORK TAXES

BUYING WRM MODEL

Minus WRM required = 2400 * 0.06 = 144 IEP

Net profit without work taxes = 156 - 144 = 12 IEP

PRODUCING WRM MODEL

Net profit without work taxes: 156 IEP

Actual value added to WRM value = 12 IEP


WITH WORK TAXES

Buying WRM MODEL
= Gross Income - WRM COst - 1(Work taxes)
= 156 - 144 - 1(0.36/0.72/1.08/1.45/1.81)
= 12 - (0.36/0.72/1.08/1.45/1.81)
= 11.64 / 11.28 / 10.92 / 10.55 / 10.19

Producing WRM MODEL

As explained most people bought Alluminuim Mines;

AM costs 10 Gold and have a production of 150 WRM
Whereas Rubber Plantations cost 35 Gold and have a production of 300 WRM

Therefore You could buy 3, 5 AM for the price of 1 Rubber Plantation giving you a production of:
525





Net Profit = Gross Income - WRM VALUE - 16(Work Tax)

= 156 - 144 - 16(0.36/0.72/1.08/1.45/1.81)
= 12 - 16(0.36/0.72/1.08/1.45/1.81)
= 12 - (5.76 / 11.52 / 17.28 / 23.20 / 28.96)
= 6.24 / 0.48 / - 5.28 / - 11.20 / - 16.96

That is the net profit of a Q7 WRM factory when a player used Alluminium Mines

Rubber Plantations have double the production so we multiply by 8 and get
: (2.88/5.76/8.64/11.60/14.48

Net Profit = 9.12 / 6.24 / 3.36 / 0.40 / - 2.48

Conclusion and my final opinion


As we can see Q7 WEPS factories has become marginal businesses producing only a small amount of income. With work taxes the correct tax is 1%. This gives the factory owner his maximum profit and keeps WEPS prizes in Ireland affordable. We need Q7 WEPS factories to sustain our army. Furthermore many players that fight uses the profit they get from Q7 factories. People will therefore fight less with high taxes bringing down what we need in terms of MPP's.