Bob owns Bob's Bakery. Bob has 4 employees, which he pays each of them $9.00 an hour. Bob's Bakery sells bagels, bread and these cute little muffins. His business is doing well, selling 300 bagels a day, on average, at $1.50 a bagel, sells 50 loaves of bread at $3.25 a loaf, and sells nearly 400 muffins a day at $1.50 a muffin.
If Bob raised each of his employee's salary to $18.00 an hour, and all 4 worked every day, for 8 hours a day, his salary expense each day would increase by $288.
Bob would then need to increase the price of his products by roughly 33% each without increasing sales to make up that salary expense.
So bagels now sell for $1.99, bread for $3.79 and muffins for $1.89. At these prices, Bob can pay his employees a living wage and actually realize a better profit without creating sticker shock pricing.
Obviously this example does not work for every business, then again not every business should be, in business.