Archived posting to the Leica Users Group, 2011/06/14
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Doug... if you increase production by hiring more workers, and get more large volume discounts, you make money for your more profitable lines as well... Unit cost drops as you divide the overhead by more units, people and volumes. Increasing production for the highest cost line is not necessarily the best way to increase profits, even if temporarily, you are production limited. Frank Filippone Red735i at earthlink.net , then even this strategy fails, then they can use the new facility to make these other products.... <<< Bass-ackwards. If they were going to expand production it should be for the most profitable models they can sell. It's a better ROI, and there's apparently demand for more production of the M9 and S2. A lower-spec'd model isn't usually the most profitable one. Doug Herr