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In this case, any up-front costs, such as certification and R&D, can be amortized over each unit sold in the dramatically expanded market. If the market sudden
by downandout 11y ago
In this case, any up-front costs, such as certification and R&D, can be amortized over each unit sold in the dramatically expanded market. If the market suddenly goes from a few thousand units per year to a few hundred thousand, the contribution that each unit sold must make to recoup up-front costs gets very close to zero.