Basic business economics, the retail selling price of product needs to equal ten times the cost of the parts used to manufacture it. That covers labour, packaging costs, transport costs, and the factory and retailers mark up.
Basic cost of getting a product out of a factory is generally three times the cost of the parts plus three times any labour costs.
Any business operating below these margins will eventually fail due to lack of funds for future product development and poor investment returns for any financial backers.
Basically, my point, but I wasn't as clear.
We have a product X, that costs $250
We are going to reduce the cost of one of the components from $35 to $9
So "we should be able to reduce the total cost to $100"
That does not compute.
They aren't talking about reducing the number of "other" components, or the labour involved, or the marketing, or anything else, just the cost of one component.