here is the best way to explain it..in simple terms...
A servcice company does not have revenue per employee increase with addtional employees.....revenue per employee is a stationary number....such is different in manufacturing....but in service, all analyses are made based on the return per employee being a set number...regardless of the increase in staff....
This does not include cost of space and technology.
If expanding means the cost of employee will increase, but the return on employee will remain the same, then one would not expand.
Now...if going above 50 employees means the cost of each employee will increase, but the return will remain the same, then an analysis will be needed to determine where it would make sense to expand....and as the numbers above show...expanding by 33% is far from the number...
And unfortunately...expanding by anything more than 33% is next to impossible at one shot.
Take it from there.
You're automatically, and wrongly, assuming that every company will maintain wages at the same price and simply add healthcare as a fully additional benefit.
IOW, you're paying your employee 25,000 a year and no healthcare, but now healthcare is mandated and you pay your employee 25,000 a year plus 5,000 in healthcare, for a 30,000 package.
Maybe the employer cuts wages to 20,000 a year, plus 5,000 in healthcare.
For no substantial net loss.