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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Ed C. who wrote (29185)	7/15/1998 1:42:00 PM
From: rudedog	Read Replies (2) \| Respond to of 97611

Ed - 10% margin on a sub-$1000 machine ($100) brings in as much money as a 5% margin on a $2000 machine This eventually leads to 'sell at a loss and make it up in volume'!!! Let me state it this way - the earnings on 2 $1000 machines at 10% are twice the earnings on 1 $2000 machine at 5%, and the revenue is the same. Higher margin moves more money to the bottom line. The most desirable thing is to have the highest margins in the highest volume business segments, although this is rarely achieved.