>> So you've got a total cost of $13 or $14 depending on how many
>> switches you use. If you're expecting to sell a million toasters, using
>> one less switch will make you $1m more profit :-)
>
> Another way of looking at it is that if you add another switch you can
> charge more. So if you increase the price of a toaster by $10 and add a
> switch that cuts out one heating element to toast bagels on one side
> only. For a million units you make an extra $9 million profit.
Yes, and I guess that's why most manufacturers will have several
different models so that no matter how much you are willing to spend
they will still maximise their profit :-)
BTW I was just in Tescos and the cheapest toaster was £4.50. So maybe my
estimates of part costs easrlier were a little high.
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