@allenJo - Well, I worked in the telecommunications industry for ten years, where we weren’t “making” anything. We provided phone service, and we had massive upfront capital investment in order to provide that network.
For us calculating the total fixed cost involved the costs of buying and maintaining all that equipment. As an industry, however, making money should have been a slam dunk. Once your infrastructure is in place then all you do is sell service – and we had lots of capacity to accommodate that service.
We believed the line, “Build it and they will come.” However, we built it, and they never came, at least not in the quantities needed to justify all that infrastructure.
I envy you. I think software is the industry to be in.