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Non-Tech : Kirk's Market Thoughts
COHR 170.45-2.6%Dec 17 3:59 PM EST

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To: Kirk © who wrote (11393)6/10/2021 3:48:18 PM
From: Sun Tzu  Read Replies (1) of 26784
 
The most logical and straightforward way of calculating the costs is to simply divide all manufacturing costs (SG&A) by the number of units produced. Anything else would probably be spelled out.

There is a benefit to Pfizer in spreading the SG&A over a larger unit count as the incremental production costs is minimal. This improves Pfizer's profit margins on the vaccines that they do sell.

As to the opportunity costs, I am not an expert in this area, but I'd be very surprised if vaccine production takes away from drug production. I think they are very different processes and use different facilities.
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