Dino:
I normally don't respond to comments made on this list, but this one crossed
the line!
There are three elements of cost:
Direct Materials Costs [variable]
Direct Labor Costs [variable]
Overhead Costs [both fixed and variable]
Once those three elements of costs are exceeded by incoming sales, you have
a profit.
Dennis was simply commenting on the initial estimated overhead costs; and
$200,000 for five people is not excessive. It is not easy to revitalize a
business.
This has nothing to do with being "un-American". It has to do with having
enough capital to sustain the new operation during this period of
revitalization. Cash flow is all important!
I suggest you discuss amplifiers and not the financing of a business.
Chuck Fainsbert
KC2NB
----- Original Message -----
From: "Dino Darling" <dino@kx6d.com>
To: "Dennis OConnor" <ad4hk2004@yahoo.com>
Cc: <amps@contesting.com>
Sent: Wednesday, September 30, 2009 7:41 PM
Subject: Re: [Amps] Alpha sold to RF Concepts
>I don't get your point Denny. This is still America, right? If they
> can maintain a company, make it profitable, and afford to pay themselves
> a decent salary, complete with benefits, all the power to them! If they
> can't, the business will fail and who wants that?
>
>
>
> Or do you think they should not turn a profit and sell their products at
> cost? I'm sorry Mr. Obama, I mean, Mr. OConnor, that's just
> un-American.
>
>
> Dino - KX6D
>
>
> -------- Original Message --------
> Subject: [Amps] Alpha sold to RF Concepts
> From: Dennis OConnor <ad4hk2004@yahoo.com>
> Date: Wed, September 30, 2009 5:24 am
> To: amps@contesting.com
>
> I wish them well, I really do... And their price reductions will help
> their sales volume hopefully...
> But I see $200K a year in salaries and bennys just for the five people
> named in the release, which does not include the grunts out in the shop
> drilling, bolting , and soldering...
>
> denny / k8do
>
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