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variable overhead
Tom, while a 45% tariff adds to the variable overhead cost of selling a product it doesn't increase the fixed cost or overhead of the retailer who sells it. If a reseller maintains the same amount of profit per item, the increase in retail cost will be less, perhaps quite a bit less, than the inventory cost increase. Without having all of the overhead costs and the volume of sales, it is impossible to know the resulting increase in selling price. The simplified calculation you are using is extremely inaccurate and misleading for an analysis of financial advantages of moving production back to the US based on tariff influence.







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