Jobs were cut from overhead and at stores, product lines were cut, and stores were closed every quarter in an effort to preserve dwindling cash flow.

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As a single exchange, Duffy figured it could cut millions of dollars in overhead costs, offer every product class in a single electronic system and be large enough to expand into over-the-counter derivatives trading.

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Under pressure to shrink overhead and telescope the new-product cycle, big companies are more likely to turn to universities or small companies to help develop ideas.

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And they can offer great prices due to less overhead, along with the convenience of shipping the product right into your home.

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Gross margins are also taking a hit with new product yield issues and, with the overhead from the new production line, we could see gross margins hover around low 30% for several quarters.

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Evangelist teachers help the company keep sales overhead low and focus the bulk of their resources on product development.

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In the process, though, it fractures the product life-cycle for systems built by those private companies, raises overhead costs on remaining work, and in general make the companies less competitive.

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Commerce does this by endeavoring to consider all of the factors of production necessary to make the product (the various materials, labor, electricity, water, and other overhead) and valuing those inputs by reference to their prices in another country.

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