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To: TREND1 who wrote (27290)	1/28/1998 4:26:00 PM
From: Ed Beers	Respond to of 53903

Larry, A key question here is "What is the definition of production cost". I assume that it include the raw materials and labor to produce the part. I assume that it excludes things like R&D to design it or the next generation, R&D to design flat panel displays and RFID tags, interest and inventory costs, sales and marketing, management, and other overhead costs. Does it include depreciation of capital equipment? Does a company make money if production cost is $2.50 and sales price is $3.50? Probably not. If the production cost is $3.00 and the sales price is $3.50? Not a chance.