Basic economics 101 at the moment due to low sales volume their fixed costs are high per unit sold , as sales increase their fixed costs per unit decrease .
Often companies initially sell at a loss to get market share , but yes the issue here based on lower quarterly receipts compared with previous quarter is that customers seem to have found substitute products when AJX decided to increase prices .
Given it is summer in the USA one would think it an ideal time for pillows that keep the head cool .
Ann: Appendix 4C - quarterly, page-97
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