Shop of Riches

[V.I.R.O.S.]

Every wanted to show off how absolutely, positively, magnificently rich you are? Well this is the place! Every item here was hand crafted by our former Graphic Artists, and I bought the rights to the graphic from them at nearly quadruple the cost! They all agreed to the fact that I could sell them, and I paid them a lot more than the images were worth, so if you try to give me a warning I'll lop your head off and put it on display. Now then, on to the items!

Rich Medallion-
Cost: 3500 Dan-Balls
Description: Don't tell me it's over-priced because that is the point! I don't think that anyone will buy it, but it's still up here for display!
http://i41.[tinypic.com]/6q9v2c.png

Slave Medallion-
Cost: 1000 Dan-Balls
Description: This medallion is especially designed for people who have "slaves"! You can hand them out to every one of them at no extra cost.
http://i40.[tinypic.com]/a9rc45.png

Glass of Tasty Wine
Cost: 250 Dan-Balls
Description: This is just a little glass of wine to put in your signature to prove that you bought something a tad expensive.
http://i43.[tinypic.com]/ok26ts.png

Glass of Delicious Wine
Cost: 2000 Dan-Balls
Description: This is another version of the Glass of Tasty Wine, except much more expensive, which will earn you much more prestige!
http://i40.[tinypic.com]/28u48wm.png

Glass of Heavenly Wine
Cost: 5000 Dan-Balls
Description: Don't even try to buy it. If you put this in your signature it will blind people to find out you are so rich you spend massive amounts of money just to prove it.
http://i41.[tinypic.com]/2954gzq.png

If your total spent amount goes over 5000 you earn Benefactor status and are put on the Wall of Fame here at the shop, as well as getting any one item of your choosing for free.

[The Dark Master]

Oh yeah, I remember making those for you (it got me most of my DBs). I wondered when you were going to sell them...
Hang on, If you are selling things I made for you, shouldn't I get a percentage of the money?

[General Veers]

Well, you were already paid for those images. If you were to have refused the lump sum that you apparently received, then you could have fairly gotten royalties for each time an image was sold. The problem with royalties is that you would only get the royalty gain times the number sold, which could be high or low. With the straight sale you made, you got a lump sum instantaneously.

If there were five badges and you sold each to V.I.R.O.S. at quadruple the price, you gained 20p Dan-Balls, where p is the average price of one of the four badges.

If there were four badges, you sold each to V.I.R.O.S. at standard price p and earned royalty r for each time V.I.R.O.S. made a sale x, you would get a total of 5p + rx. In order for your lump sum to be more valuable than earnings in royalties, 15p would have to be more than rx. For either method (royalties or lump sum) to be equally profitable, 15p would have to equal rx. For royalties to be more profitable than the lump sum, 15p would have to be less than rx.

If you would have charged 10% in V.I.R.O.S.'s sales in royalties, then you would earn r = 0.1p for each badge sold. If V.I.R.O.S. sold 10 badges, then you would earn p Dan-Balls from royalties. Since you also got 5p for the five badges to begin with, you would have earned a net gain of 6p. That is less than 20p, and ergo is less profitable than the lump sum you chose to take.

5p + 0.1px = 20p
p(5 + 0.1x) = 20p
5 + 0.1x = 20
0.1x = 15
x = 150

If you gained 10% of profits in royalties, you would have to hope that 150 badges would be sold.

5p + px = 20p
p(5 + x) = 20p
5 + x = 20
x = 15

If you were to usurp 100% of profits in royalties, you would have to hope that 15 badges would be sold.

Clearly, you did well in charging quadruple for the badges...

[The Dark Master]

So basically what are you saying?That I should get some of the profits as well as the lump sum I got...?

[General Veers]

No. Either go for the quadruple-priced lump sum you charged, or give back 3/4 of your lump sum and charge a percentage in profits that V.I.R.O.S. makes in sales.

Based on algebra, you have to figure out which of the two methods would be most profitable to you.

EDIT: I also updated the above math to reflect 5 badges instead of four badges.

[The Dark Master]

Seeing as I don't think many people, I'll keep all of the lump sum he gave me at first...

And GV, your sig has a grammar mistake! It should be 'prizes give no fewer than 5000 dan-balls'. You use 'fewer' for plurals.

[dagamer]

Gah
I was looking for an error.
>:C

[Qwerty]

I'll probably take "rich" and "slave", I don't think I need any wine. The only badge I need is "slave", although I was considering having a custom one.

[V.I.R.O.S.]

Okay, I'll just charge you for that, and now you have the URLs. They're under each item

[Qwerty]

*ahem*

Staff get stuff free, remember? I'll be taking thosendan-balls back...

[V.I.R.O.S.]

[glow=yellow,3000]Sale![/glow]
All items are half for 24 hours after this post! Buy! Buy! Buy!