Originally Posted by
FCeng84
How many orders do you have to spread the development costs across? $60K doesn’t seem that high if the non-recurring costa are spread over 30 to 50 planes
That is true.
But first you have to decide how many aircraft you can sell with this option. Say you think you only can sell one aircraft. Then you must charge say 1 million for that option. Ofc you wont get any sales at that asking price.
Let say you think you can sell 50 airplanes, than the 1 million non-recurring is down to $20K per aircraft. How many will you now sell, might be hard to tell, you think you will get some sales.
What if you think you can sell 6,000 aircraft with that option? Then the non-recurring cost would be only $166 for each aircraft. I think everyone would take that option for such a low cost and you would sell it on the full production run of the aircraft family. You could just as well make it standard.
I suppose the actual recurring cost for this option would be close to zero, isnt that correct?