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To: Street Walker who wrote (2230)2/10/2000 3:26:00 AM
From: Riverlightning  Respond to of 5582
 
I agree except for your last point: "4. Save up the $10M for a complete Zicam manufacturing plant
to save the $1.50 per box it is currently costing to have manufactured by Botanicals."

My problems:
Assuming that the $1.50 per box is correct there obviously still would be a cost of doing it themselves. We must know what that cost figures to be to calculate a net savings per box. Then we must have a rough idea of how many boxes we will be making. Then we can estimate total savings.

From that point the cost of a new manufacturing plant must be considered. A cost of funds figure on the 10 mil must be subtracted from the total savings. Also, there are likely problems which could result in down time and quality control dropoff as the company switches from one manufacturing facility to another and adjusts to the change. At this time I would say "it ain't broke, don't fix it." Your comments?