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To: Chung Lee who wrote (58078)	5/24/1999 9:41:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164685

You dont see any chance in the future that ramp up in revenue will offset some variable cost part of the fulfillment? (I know this is a dead horse, lets beat it again, shall we?) Chung, I do not. A ramp up to what number? We are already past a $billion run rate. The higher the revenue, the more inventory necessary, the more labor necessary and the more leased distribution space is also necessary. The only solution is a increase in the selling price to increase gross margins. Glenn