This improvement is principally due to higher auction and private sale commission revenues, partially offset by an increase in operating expenses that is due, in part, to higher incentive compensation costs, a higher level of direct costs consistent with the volume and composition of auction sales, and the cost of investments in strategic initiatives.

FORBES: Sotheby's Q3 Sales Down 4%

This calculation establishes the total cost that employers are willing to incur to employ that worker, and the employer is indifferent to the composition of the pay package comprised of wages, benefits, and payroll taxes.

FORBES: Doubling Down on the Payroll Tax Holiday Still Won't Create Jobs