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Manager's calculations tend to have this format:

Person X produced me $A amount in 40 hours. His salary is $B. B being much smaller than A[1], I can increase it without much an impact on the bottom-line. But, again, B being much smaller than A, if he worked less hours, I'd reduce A much more than I reduce B.

[1] It has to be, otherwise, will all the overhead a business has, I'd go broke.



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