52051
SENIOR MEMBER
- Joined
- Sep 9, 2016
- Messages
- 2,245
- Reaction score
- -11
- Country
- Location
What he's saying is that the price tag will always yield a 5% (or more) profit margin, and thus if its cost rises significantly then the PLAAF might not buy it in the first place.
It is not cost rise, it is the design target cost VS the realized cost delta.