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To: quehubo who wrote (33313)7/3/2004 9:40:14 PM
From: profile_14  Read Replies (2) | Respond to of 206110
 
The unions want labor intensive jobs. The corporations want profits. I know for a fact that the margins are exorbitant (manufactured cost), before you tack on corporate overhead, health care, and other fringe benefits, for each car sold. So quite frankly, the companies will sell the profitable cars. That is what Honda did selling "econo cars." To be fair, the answer lies in how corporate headquarters allocates overhead. Is it activity-based accounting or not? To illustrate, here is a question for you:

If a hotel has only one guest staying at the hotel on a given night, does the hotel charge that guest all of the expense incurred that night? Of course not, but someone has to bear the costs. There are ways to do this until you are blue in the face. The answer to your question is not that simple as it involves many more variables.