Charges

Andy,

When you have some time, can we get together on the circumstances under which
we should charge a business unit for the addition of a new Product Type?

I'm thinking specifically of the units which do receive a cost allocation,
but are adding products which in our opinion are of questionable economic
benefit.

These could be charged in accordance with our current price schedule. i.e.
new Product Types added to existing businesses could be charged the
incremental setup fees. New Businesses would be the 250K.

If the Product Type is of clear benefit (e.g. Options for US Gas and for the
guys we are training this week), then the costs would be part of next year's
allocation.

What do you think?

Dave