[MoF] Companies and Income: Part III

Day 5,088, 06:48 • Published in Canada Canada • by Canadian Ministry of Finance

This is the third and final part of the Companies and Income Series. Part I reviewed all the methods of earning money in erepublik. Part II is the introduction to this article. If you haven’t read it already, you should read over that section.

This article will be making assumptions, some of which come from the previous article. These assumptions are:
1. That any raw material companies are the 35 gold companies. (Hunting Lodge, Rubber Plantation, Granite Quarry, Neodymium Mine)
2. That you understand how productivity is calculated, including pollution, national bonus, and region bonus.
3. That you are a Canadian citizen working in WaM factories located in Northwest Territories

This article will look at only a few companies to keep it readable. It will look at Work as Manager where applicable, and it will look at using employees. It will also compare what impact a Tycoon Pack has on production and profits. This article is not meant to be a comprehensive calculation for all players, as each player’s situation is different based on resources, companies, packs, region, citizenship, goods market, and activity levels.

This article will not be calculating whether a tycoon pack will pay for itself with production, but rather will simply be considering how the extra production bonus from the tycoon pack will impact the profitability of each product.

Without further adieu, let us begin with looking at Food Production:

Q3 Food

National Bonus: 25%
Region bonus: 0%
FRM Pollution Day 1: 0.40%; Day 2: 0.28% ; Day 3: 0.51%
FRM Pollution Average: 0.39%
Q3 Food Pollution Day 1: 0.19%; Day 2: 0% ; Day 3: 0.14%
Q3 Food Pollution Average: 0.11%

Basic FRM Productivity: 100+25+0-0.39 = 124.61%. Basic production = 2.5 FRM units.
Basic Q3 Productivity: 100+25+0-0.11 = 124.89%. Basic Production = 100 Q3 units. Basic Consumption = 3 FRM (0.03 FRM per unit)

Total FRM Production per Hunting Lodge = 3.11
Total Q3 Production per factory = 124.89

WaM

Tax pai😛 16.93 per work.
FRM breakeven market price: 16.93/3.11=5.44

If FRM is cheaper on market than break even price, purchase from market, otherwise produce yourself.

Q3 food sale price: 0.53 per unit

Revenue: 0.53x124.89=66.19
Costs: 5.44*124.89*0.03+16.93=37.31
Profit: 66.19-37.31= 28.88

Employee

Employee price: 2015 cc per work
FRM breakeven price: 2015/3.11=647.90

Better to produce your own FRM or buy from market, which we will assume you do.

Revenue: 0.53x124.89=66.19
Cost: 5.44*124.89*0.03+2015=2035.38
Profit: 66.19-2035.38= -1969.19

Tycoon Pack

Add 20% to productivity of each product. Recalculate for WaM only.

FRM breakeven cost: 16.93/3.61=4.69
Revenue:0.53x144.89=76.79
Cost: 4.69*144.89*0.03+16.93=37.31
Profit: 76.79-37.31=39.48

Q7 Weapons

National Bonus: 100%
Region bonus: 14%
WRM Pollution Day 1: 6.82%; Day 2: 6.23% ; Day 3: 6.76%
WRM Pollution Average: 6.60%
Q7 Weapon Pollution Day 1: 25%; Day 2: 25% ; Day 3: 25%
Q7 Weapon Pollution Average: 25%

Basic WRM Productivity: 100+100+14-6.6 = 207.4%. Basic production = 2.5 WRM units.
Basic Q7 Productivity: 100+100+14-25 = 189%. Basic Production = 10 Q7 units. Basic Consumption = 20 WRM (2 WRM per unit)

Total WRM Production per Rubber Plantation = 5.185
Total Q7 Production per factory = 18.9

WaM

Tax pai😛 16.93 per work.
WRM breakeven market price: 16.93/5.185=3.26

If WRM is cheaper on market than break even price, purchase from market, otherwise produce yourself.

Q7 Weapon sale price: 60 per unit

Revenue: 60x18.9=1,134
Costs: 3.26*18.9*2+16.93=140.16
Profit: 1134-140.16=993.84

Employee

Employee price: 2015 cc per work
WRM breakeven price: 2015/5.185=388.62

Better to produce your own WRM or buy from market, which we will assume you do

Revenue: 60x18.9=1,134
Cost: 3.26*18.9*2+2015=2138.23
Profit: 1134-2138.23=-1004.23

Tycoon Pack

Add 20% to productivity of each product. Recalculate for WaM only.

WRM breakeven cost: 16.93/5.685=2.98
Revenue:60x20.9=1254
Cost: 2.98*20.9*2+16.93=141.49
Profit: 1254-141.49=1112.51

Q1 Housing

For Housing, we shall assume 25% pollution for Q1, and 10% pollution for HRM. We shall assume 100% national bonus, and a 15% region bonus.

No Tycoon Pack

HRM Productivity: 100+100+15-10=205%
Q1 House Productivity: 100+100+15-25=190%
Basic HRM Production: 2.5 HRM. Basic Q1 House production: 0.20 units. Consumption: 2 (10 HRM per unit)
Total HRM Production per Granite Quarry = 5.125
Total Q1 Production per factory = 0.38

Employee: 2015 cc per work
HRM breakeven price: 2015/5.125=393.18

If HRM prices are below this, purchase from the market, otherwise use employees to produce HRM.

Revenue: 8300 x 0.38 = 3,154 cc
Cost: HRM breakeven price*Q1 production*10+2015=393.18*0.38*10+2015=3,509
Profit: Revenue-Cost=3,154-3,509=-355

Tycoon Pack

Add 20% to productivity.
HRM: 225%
Q1: 210%

HRM Breakeven price: 2015/5.625=358.23
Revenue: 8,300 x 0.42 = 3,486 cc
Cost: 358.23*0.42*10+2015= 3,519 cc
Profit: 3,486-3,519=-33cc

Overall, if you are able to find a region with a higher region bonus and more importantly, much less pollution, you might be able to turn a profit without tycoon pack, and can likely turn a small profit with a tycoon pack.

Q5 Aircrafts

For Aircrafts, we shall assume a 25% pollution for Q5, and 10% pollution for ARM. We shall assume 100% national bonus, and a 15% region bonus.

No Tycoon Pack

ARM Productivity: 100+100+15-10=205%
Q5 Air Productivity: 100+100+15-25=190%
Basic ARM Production: 2.5 ARM. Basic Q5 Air production: 5 units. Consumption: 5 (1 ARM per unit)
Total ARM Production per Neodymium Mine = 5.125
Total Q1 Production per factory = 9.5

Employee: 2015 cc per work
ARM breakeven price: 2015/5.125=393.18

If ARM prices are below this, purchase from the market, otherwise use employees to produce ARM.

Revenue: 580 x 9.5 = 5,510 cc
Cost: ARM breakeven price*Q5 production*1+2015=393.18*9.5*1+2015=5,750.21
Profit: Revenue-Cost=5,510-5,750.21=-240

Tycoon Pack

Add 20% to productivity.
ARM: 225%
Q5: 210%

ARM Breakeven price: 2015/5.625=358.23
Revenue: 580 x 10.5 = 6,090 cc
Cost: 358.23*10.5*1+2015= 5,776 cc
Profit: 6,090-5,776=314cc

If you have a tycoon pack active, and you are able to find a region with high production bonuses, then even with pollution you will be able to turn a profit as long as the Raw Material pollution values remain around 10% or lower. If you can find a place with lower pollution, you will earn more and possibly make a profit even without the tycoon pack.

Conclusion

These are just a few simple calculations, but hopefully you get the gist of how to do the calculations for yourself for whatever industry you are looking to produce in. Hopefully this also helps shed light on what industries are profitable, and what industries are not profitable. This might help save you from spending gold to create companies without knowing the true cost or potential earnings, or realizing how long it will take to earn a return on your investment.