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To: sibe who wrote (5022)	3/17/1998 11:00:00 PM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 10786

Sibe, please let me know if the following analogy makes sense to you because, apparently, I must not have expressed myself very well earlier today. Say you have a copy shop. Say your goal is to make a million copies a day, and since a copy machine can do 100,000 copies, you decide to buy 10. To assure quality control you decide to hire 10 people, one for each machine. Are we agreed that even before you do a single copy you have to buy one machine and pay one salary? Does it make sense that as you ramp up you are constantly buying machines and hiring people -- but -- when you reach your goal of 10 your expenses naturally level off? OK, lastly, let's assume your business plan was to buy a new machine each time you reached 20,000 copies on the previously bought one. Does it make sense that each time you increase a single machine above 20,000 copies that you are increasing your revenue without an increase in expense? In other words, have I adequately explained what it means to "ramp up"? Have I adequately explained why, at a give point in time, increased revenue does not mean increased expense? Thanks for your time and playing along (gg). - Jeff