Fag packet cal10 Aug 2018 23:27
HMI break even with sales of 30K. Approx Fixed cost 30K X $50 $1.5M
Sales price of $60 tonne broken down, $10 Operational cost leaving $50 gross profit.
Approx Fixed cost for HMI per annum is around $1,500,000 (30K X $50) 100k of sales Operational cost $10 Gross Margin $50 Gross profit of $5M - $1.5 = $3.5M Net Profit
320K of sales Operational cost increases by say 10% Fix cost rise to $1.6M $11 Gross Margin $49 Gross profit of $15.6 M - $1.6M Net Profit $14 Very approx figures but you can get a feel for how hugely cash generative the operation can become.