[Lew Ledyard]

The $7500 per pattern and $750 per wheel was the flat cost regardless of the number ordered. The discount attributable to volume really only affects how the pattern cost can be amortized. One set of wheels is $18,000. $15,000 ($7,500 X 2) + $3,000 ($750 X 4). At 20 sets of wheels, the $15,000 can be amortized over all 20 sets, so the total cost would be more like $3750 per set of 4.