$165 is your breakeven point where your profits after "tax" are equal to the annual fee, at which point you are in the black and making a profit on incremental

$165 is your breakeven point where your profits after "tax" are equal to the annual fee, at which point you are in the black and making a profit on incremental sales. Oh wait that was dumb, the 30% tax means the breakeven point is $141.43. Also it seems possible now that the GP was speaking from Apple's perspective, not the developer's. Oh wait, you're the GP. Sorry, I was confused about the point of the discussion.