Advanced Micro Devices Inc (AMD)

[bobs10]

Not sure if I understand you question. Fixed/variable costs are in about a 70/30 ratio. So once your fixed costs are recovered the extra units produced don't have to carry that 70% of costs related to MG&A(Marketing, General and Administrative). The only costs that apply, above break even, are the variable ones (material and labor). As one would imagine running the fab flat out does wonders to the gross margins, as long as you can sell the stuff.