Replies to post #26131 on Muscle Pharm Corp (fka MSLPQ)

[Subifreak]

It should decrease correct? Larger development orders would get somewhat of reduction in costs.

[MattyVan]

Profit margin on every $1 in sales should go up as sales go up.

Once they have there distribution in place and stores selling there products it does not cost them too much more to send a GNC 200% more product then the previous quarter.

Production costs.... if there manufacture makes say 500,000 of assault one quarter, and 1.5 mil the next the cost per item should go down increasing their profit margin as the larger quantities of packaging and ingredients in the product are ordered the cost per finished product goes down.

Only 3 more posts and I am spent for the day.

[Hamham1]

Gross margin has been stuck at 35% the past two quarters despite incremental sales growth. Co packing agreement must be based upon a guaranteed margin with out breaks. Worth keeping an eye on in the upcoming quarters.