[TenTec] Misc. Orion comments

[Jim Reid]

Greg, AB7R,  wrote,  in part:

>  I don't think you can just assign a simple factor to the 
> manufacturing cost to come up with the retail price for 
> one unit.

After I wrote:

>  Manufactured cost = prime product assembly labor 
  and materials,  only.

>  For a Growing company,  x 6 those two factors alone
>  will pay all other costs,  marketing,  equipment, G&A, rent,  
>  etc., etc. and also enough profit to keep on investing 
>  in new products and employees. 

My x 6 factor came from my experience years ago in
the microwave component industry. We mfg. both
silicon transistors and various components using
silicon.  Later on,  into GaAs FET's and components
using them.  Our founder and CEO would roast my hide
when I would try to lower prices on our basic"components"
to grow orders volume,  hi.  I got many a lecture that my
job did NOT include determining product profit margins,  hi.
I was to book orders.

The classic struggle between  objectives:  I was on incentive
for a given dollar volume of bookings, a kicker of so many more
$'s income;  he was on incentive for profit!  His incentive being 
higher stock prices, as he,  as did Bill Gates,  held a huge %
of the outstanding company stock.  He liked the x 6 factor most 
of all.  He did just fine,  as he eventually was on the Board/
helped set up the NASDAQ system.

73,  Jim  KH7M