All right, we're back to the second question that Thomas put up on the light board. And that was dealing with with these different prices $8, $12, $15, and $20. And to look at the margins and the profitability that represents. Now why are we doing this? Well this gives us some idea what's reasonable, what might be feasible in this space. What a reasonable price to the end consumer might look like, may or may not be profitable to Phillips or the channel intermediary. So let's really go through this particular calculation. So we ask you to look at three, well, four different retail prices, 8, 12, 15, and $20. Now what was the manufacture price given these different retail price? Well, the case states again that we've got this 55% margin that we're dealing with at the moment. So to get at the manufacture price, what we would do here is we take 8 times (1- 0.55). And that will give you the actual dollar price of the manufacturer to the retailer. This is that margin calculation that we dealt with in the first course. So, if we do that for the $8, $12, $15, and $20 prices, what we get is $3.60, $5.40, $6.75, and finally for that $20 mark, we get $9. Now what does that imply in terms of the retailer dollar margin? Well, you're really just taking this price and you're subtracting off the manufacturer price from that, right? So if you do that, you get $4.40, $6.60, $8.25 and finally, we get $11. Now those are pretty hefty looking dollar margins for that light bulb, right? Now how do we get to Philips profitability? Well, we have to subtract off the cost of the bulb to Phillips from what they're charging from the bulb, right? That will be their dollar margin, while the cost of the bulb, it doesn't make any difference with the prices, of course the cost stays the same, it's $4. So, let's do some quick math on this. If the manufacture price is $3.60 and it cost them $4, that looks like bad news, right? That is minus 40 cents for every bulb they sell. Here if we take 5.40 minus $4, it's $1.40 on the margin. If we take 6.75 minus the 4, what do we get? Well, we get $2.75. And finally if we come down here, and we take 9 minus the 4, what is that? Well, that looks like about, is that a $5 margin? Yes, it's about a $5 margin. So well what does that mean? What's our big take away from this? Well, it kind of looks like anything less than about $10, we're losing money. We're going to be losing money. So we really gotta take that into account. If this is going to be a feasible product for us in the marketplace, and that retailer is taking a 55% margin, our price is going to have to be double-digits in dollars, in order for this product to make sense for us.