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To: Paul Engel who wrote (37086)10/21/1997 9:18:00 AM
From: Larry Loeb  Read Replies (2) | Respond to of 186894
 
Paul,

My interpretation is that their yields were horrible. This resulted in their selling product at below variable cost. Had their yields been higher, their costs would have remained about the same (some variable cost for packaging), but they could have received more revenue - which would have dropped to the bottom line. This could have resulted in a profit (or a reduced loss).

This is based on my understanding of microprocessor economics. Your knowledge of the actual production process far exceeds mine. Base on that knowledge, does my understanding make sense?

Larry