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Breaking News- Lionel returns to HO
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I wonder what the " break-even "point would be for quantity on something like this....? That is likely the determining factor as to whether Lionel might produce another redundant style of engine.... [ ie: like say, a $900 Big Boy ???[:0] ].....or whether they find they have misinterpreted a market they have been away from. <br /> <br />Assuming Lionel gets around US$380 for each of these new Challengers from distributors, how many do they need to sell to: <br />[ a ]amortize their design & tooling costs ? <br />[ b ] cover their promotional costs ? <br />[ c ] cover material, labor, & overheads on the first "xxx" quantity units ? <br />After this, they would only have [ c ] to pay for, on subsequent units. <br /> <br />If I were guessing, I would guess around 2500 units would be the magic number needed to reach that break-even point, mainly due to their offshore manufacturing. <br />Anyone else have a comment or guess on this? <br />regards \ Mike[?]
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