Her daughter disagreed. Timothy, she said, was known to be shy, and despite his small stature and stammer, he was regarded as"quite a dish" by the faculty females. Julia hoped one day to coax him out of his shell. Her mother was skeptical."I've spent hours on his tax problem and he hasn't once made a token pass at me!" she exclaimed, "It's not natural. Just wait until Friday, when I see him next. I'll show you how to 'coax' him!"Julia should have heeded the warning."Be a Darling," Julia's mother said, looking up from the pile of dockets, letters and receipts she and Timothy had spread over the kitchen table, "and pop down to that little Thai cafe in Badham Street. A green curry would be nice... and some honey prawns and whatever you fancy. I know they take an age but the food is really wonderful."Julia should have guessed what was in her mother's mind but she needed to go to the library which was only five minutes walk from the Phuket (How the two of them had giggled when the sign. It appears, however, that we have enough business — paid in full, with accompanying irrevocable letters of credit — to increase our total sales volume significantly in spite of the loss of Magna. I mentioned it's in confidence. The confidence doesn't extend to the income effects, but I would just as soon not advertise to our competition how good Latin American business can be."When they returned to the office, Kelly said, "Cliff, I'm impressed. What you're telling me is you have more than covered the loss of the Magna business, and, I infer, although neither of you said anything, at substantially higher margins. There's been an asset write-down, but that was junk, anyway."Would I be way off base if I guessed your costs are way down, too? For example, I don't see the normal piles of scrap lying around. I would guess your raw-material utilization is very high, and your rejects are very low. I would estimate you may be looking at a 10 percent pretax profit now. Would that be.
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