Nice Grade 3 level dig you made against me, but I'll happily address your point: The limited-hangout numbers game only gets you so far, then you have to get into specifics, i.e., You are throwing out a theoretical 50% of Revenue cost for Labor, but, how many employees are we talking about, what kind of business is it exactly, what constitutes the 30% in "other costs" - Premium Fuel in the Humvee?
Maybe you've got 10 laggards working for you who do 60% of a 'good job,' so if you Fire 40% of them and get the other share Up to Snuff, then you've just regained 20% of your Revenue and after the 32% increase in wages you are left with 30% of total revenue, presuming you're still wasting money on gas for the Humvee...