TSN 0.00% 1.0¢ the sustainable nutrition group ltd

fondaparinux update, page-61

  1. 11,698 Posts.
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    "You do realize a 100% increase in yield, doesn't make a 100% increase in profit. In-fact it's no where near that."??

    ok, lets run some numbers here. These are not the actual figures, but show how a 100% increase in yields (or a 50% reduction in production costs) can make a big difference:

    Current....
    Sale price of 1 unit: $1,000
    Cost of making 1 unit: $600
    Cost of sales, marketing of 1 unit: $300
    Profit $100

    Future....
    Sale price of 1 unit: $1,000
    Cost of making 1 unit: $300
    Cost of sales, marketing of 1 unit: $300
    Profit $400

    Hence one has halved the cost of manufacturing but increased the profit 300%
 
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