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Technology Stocks : America On-Line: will it survive ...?
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To: Brian K Crawford who wrote (1090)1/17/1997 9:29:00 AM
From: Joel Sternberg   of 13594
 
>>We estimate variable costs are
between 15% and 20% and are primarily comprised of telephone costs. We estimate incremental costs of
telephone usage are approximately $0.25 per hour, which is essentially comprised of incremental leasing
costs for new modems, servers, and telephone lines. >>

Thanks for the post, Brian. Are "variable costs" supposed to synonomous with "incremental costs" or are variable costs equal to incremental costs plus something else? In economics, at least, the two
would be the same, but it is not clear to me from the RS quote.
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