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To: Glenn D. Rudolph who wrote (54586)5/2/1999 2:14:00 PM
From: John Donahoe  Read Replies (2) | Respond to of 164684
 
Marketing and sales............. $133,023 mil

How much of the above number do you think is fullfillment cost? An estimate/guess will do.



To: Glenn D. Rudolph who wrote (54586)5/2/1999 2:49:00 PM
From: Wayners  Read Replies (2) | Respond to of 164684
 
You will notice that it does not say how much is marketing/sales and how much is customer service, and distribution center personnel. However, we know the marketing and sales costs are PRIMARILY marketing and sales costs and NOT customer service and distribution center personnel costs. No free dinner today. Thanks for trying.



To: Glenn D. Rudolph who wrote (54586)5/2/1999 3:45:00 PM
From: Wayners  Read Replies (1) | Respond to of 164684
 
"Primarily" is definitely more than half and probably more like 85% to 90% marketing &sales vs distribution, but lets say its only 75%. For 1998, you cut out those 75% market and sales expenses and you've got an 11M profitable company, my original thesis.

Net loss of 124M + .75*(133M Marketing Expense) + .75*(47M Sales Expense)= 11M Net Profit.

Q.E.D.


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