'04 H1

[MAC]

If there are buyers, I am sure they will make as many as they can. I personally am not too convinced about the military production. Wonder why 235, not 245 or 225. Most potential H1 buyers went to buy H2s. But H1 is very important to maintain the image to sell H2.

It is extremely expensive to run small production. Imagine if the H1 brochure (which I have) costs $50,000 to print, that is $212 per brochure, not the cost to make each brochure, but average cost for each of the 235 H1s to be sold. Likewise with everything exclusively or new made for 04 H1s.

When we make a new product, we spread out the development cost evenly among the projected quantity, add to the actual production cost to arrive at the cost for each unit. If the initial development cost is $10,000, we only sell 1,000 pcs, the cost to add is $10 each unit, vs. 1 cents if we plan to sell 1 million units. This simple calculation killed 99% of the new products we designed before they leave the design department.

There are products by itself we know in advance we will not sell enough to make money, but it helps or is critical to the sales of another product, then we do it and count it as part of the cost of the main seller, in this case, the H2.