- 22 -
The material markup used by Compaq U.S. was a function of
the risk taken by the unrelated subcontractor. In the PCA
industry during 1990 through 1993, material markups ranged from
10 percent to 32 percent with an average at approximately 18 to
20 percent. To complete the comparison, the turnkey equivalent
was then divided by the quantity of PCA's to arrive at a weighted
average for unrelated subcontractor prices.
Between 1990 and 1993, Compaq U.S. purchased over
3.6 million PCA's from 14 unrelated subcontractors at an
aggregate price of $197.5 million on both a turnkey and
consignment basis. These purchases translated into an aggregate
turnkey equivalent price of $597 million.
The following chart sets forth all Compaq U.S. purchases
from unrelated subcontractors during 1990 to 1993:
Power Memory Video Backplane/
Supplies Processors Boards Boards Other Total
Avex
Units 0 4,874 53,156 0 9,310 67,340
Purchases $0 $922,015 $1,262,726 $0 $600,392 $2,785,133
Turnkey equivalent purchases$0 $1,725,009$4,997,506 $0 $84,546 $6,807,061
% of Compaq U.S. standard cost 92.3%
Bull HN
Units 0 24,842 0 0 0 24,842
Purchases $0 $1,040,555 $0 $0 $0 $1,040,555
Turnkey equivalent purchases$0 $13,462,015 $0 $0 $0 $13,462,015
% of Compaq U.S. standard cost 99.9%
Celestica
Units 0 0 13,044 0 0 13,044
Purchases $0 $0 $1,188,804 $0 $0 $1,188,804
Turnkey equivalent purchases$0 $0 $2,677,985 $0 $0 $2,677,985
% of Compaq U.S. standard cost 127.8%
Citizen
Units 150,796 17,935 0 0 8,770 177,501
Purchases $5,459,073 $3,472,731 $0 $0 $1,309,651$10,241,455
Turnkey equivalent purchases$5,430,032 $3,458,607 $0 $0 $0 $8,888,639
% of Compaq U.S. standard cost 92.8%
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011