In this passage, Sun Tzu is discussing the expenses that a government incurs in maintaining its military. He is saying that such expenses, including the cost of repairing and replacing equipment like chariots and horses, as well as protective armor and weapons, will typically amount to four-tenths of the government’s total revenue. In other words, a significant portion of a government’s resources must be devoted to maintaining its military capabilities.
A business should allocate a percentage of its gross sales to pay for overhead expenses.
A business should allocate a percentage of its gross sales to pay for overhead expenses, such as rent, utilities, and insurance. By doing this, the business can ensure that it has the funds available to maintain its operations and meet these important costs. It’s important for businesses to carefully manage their overhead expenses and ensure that they are not spending too much relative to their sales.