RE: RE: Notes I would like to add my take on what you posters have stated.
First off you must declare the profit margins based on selling and or cost. I spent 35 years in retailing and we calculated our profits and loss statements totally on selling. So here goes:
LW is selling for $59999. My guess is that they would be happy to earn 33-35% profit on selling. Based on that they will be paying $40000 Euros or approx. $53000.00 CDN. to Verisante.
If you calculate this from a cost perspective Cost= $40000euros to selling @ $59900euros they will achieve a $20000 euro profit, which shows them a 50% GP based on cost.
All of this of course is if my GP margins are correct. But in my retailing world we were happy to achieve 30-35% based on selling. Most firms would be I'm sure.
In any event if Verisante gets approx. $53-$55000/unit based on a cost of approx $25000/unit, they are doing very well also. They would show a GP of 55% on selling and 110%+ on cost. Great business model. IMHO