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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Scumbria who wrote (58647)	5/18/1999 3:45:00 PM
From: RDM	Respond to of 1592874

Scrumbria, The estimates I gave for margin is the gross margin, not profit margin. Gross Margin= 1-Manufactured cost/Revenue The Gross Margin costs do not include R&D, G&A, Selling Cost, or Profit. That is: Profit=(Gross Margin*Revenue) - selling costs - G&A -R&D A most difficult question is how to determine the selling, G&A and R&D costs associated with Celeron for the purposes of anti-trust regulation evaluation. It is easier to measure to totals for the entire company than to know how to allocate some fraction of them to the Celeron product line. I would guess Intel has considered evaluation methods very carefully. Whether others will agree with their assessment is another matter.