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To: Sleeperz who wrote (1336)1/24/1998 10:10:00 AM
From: Mitchell Ryan  Read Replies (1) of 16960
 
<<SGA, R+D and manufacturing costs are more or less fixed by the company. To cover these costs company Z has to sell X number of Voodoo boards to break even. Then anything over X is Y+X and is profit. If there is a shortage of chips then company Z might not get enough chips to make enough boards and the result is Revenues don't cover the expenses or its just enough to eak out a profit but not enough to build up the company. Don't forget there are about a dozen companies fighting for the Voodoo chips and market share.>>

Yes, I don't argue that X number of boards need to be sold for break even, but how would you know whether or not Micronics has already achieved that? Your statement that nobody can make money selling Voodoo based boards is without basis. If you have facts to back your claim, please share them with us.

Ryan
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