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Comment by HPsquared

16 days ago

Don't underestimate the appeal of saving one cent per unit. So long as the costs are externalised, anyway...

The correct calculation is what proportion of your profit margin will be saved by that one cent per unit. It gets more complicated if that control board was outsourced. If it costs 10 USD for the sub supplier to make and they sell it with a 10% markup then saving that one cent adds 1% to their profit.