TSN 0.00% 1.0¢ the sustainable nutrition group ltd

following on from the above...another observation might be that...

  1. 1,057 Posts.
    following on from the above...

    another observation might be that DRL will be able to lock in sales contracts at different prices for different customers. so if we were to get 50% market share it might mean that a portion of those customers are on a 20 or 30% discount while others are on a 50% discount. retail and wholesale markets might see that sort of price disparity.

    in that situation, and applying the above logic of production unit costs reducing as sales and production increase we can see rather impressive earnings to ACL - see below

    but again, i have no idea what the economy of scale is here. if the first 2m units cost 40m to produce how much does the next 1m cost? surely not 20m. 14m? ie, 12USD per unit? maybe.
 
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