Join Date: Aug 2006
Location: Chicago, IL, USA
I would say in raw materials, it's close. Especially after all the development work had been done.
But in developmental costs, salaries, cost of maintainence of assembly plant, etc. No. For a run of 3-5 years, they probably have to sell them pretty near MSRP to make a profit. Especially if they don't sell well. I'm sure they have bean counters that have thought this through.
It probably doesn't cost them much to go ahead and run an extra 5 bikes through the plant. Or release 5 of the overstock in a given year.