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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: wanna_bmw who wrote (82934)6/19/2002 2:15:47 PM
From: Charles GrybaRead Replies (2) | Respond to of 275872
 
wbmw, we've gone through this before, a big chunk of the cost associated with each cpu is fixed so the more cpus you make/sell the lower the cost gets. I am not privy to the exact numbers but I am sure there's a threshold past which it makes sense to sell more $50 Cpus than a lot fewer $65 cpus.

C



To: wanna_bmw who wrote (82934)6/20/2002 6:12:57 PM
From: Joe NYCRead Replies (1) | Respond to of 275872
 
wbmw,

Great. So AMD sells 67% more CPUs with 67% more operating costs

Great news! it means that with $200M reduction of revenues, there will be a $200M reduction in costs and the loss will be unchanged from Q1. NOT

Anyway, one thing I don't understand is why this confusion about fixed / variable cost is exclusive to Intel posters. Even from smart Intel posters.

Joe



To: wanna_bmw who wrote (82934)6/20/2002 7:49:21 PM
From: Dan3Respond to of 275872
 
Re: So AMD sells 67% more CPUs with 67% more operating costs

You really do believe that marginal costs = total costs, don't you?