I'm not selling at these prices, but I do agree that the $800,000 in R&D is more or less a fixed cost. They can't stop development or they'll eventually lose customers. Having said that, that $800,000 includes some ability to widen their product suite, in my opinion.
I suspect that the company can do a more than simply tread water without having to increase R&D. I think the CEO aims for about 20% of Revenue on R&D.
Just off the top of my head.
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