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To: chuckles58 who wrote (46918)7/10/2001 3:55:09 PM
From: Pravin KamdarRespond to of 275872
 
CB,

For your fixed cost example to be true, you must assume that unit volume at $50 per chip has doubled from that at $70 per chip. Otherwise, you have to take a weighted average.

Pravin.



To: chuckles58 who wrote (46918)7/10/2001 4:01:34 PM
From: Paul EngelRead Replies (1) | Respond to of 275872
 
Re: "Albert's math is fine. The difference between fixed cost and variable cost is that you incur the same fixed cost regardless of quantity produced. "

What ?

Albert assumed the fixed cost of TWO CPUS was the same as ONE CPU - $50 !!!



To: chuckles58 who wrote (46918)7/10/2001 4:20:57 PM
From: AK2004Respond to of 275872
 
Chuckles, Milan
thank you for trying to help
Regards
-Albert


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