Comment by jemroc

I guess I'm the only dumb one here. Can someone explain to me how he came up with the 1.5 as a multiplier for the new hire's salary? Also the part where he talks about making a 50% "profit" on the new hire and then proceeds to subtract a third from 16.7%. Why 50% and why 1/3? How did he come up with those numbers? Please enlighten me.