Fundamental Cost vs Markup Cost

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Fundamental cost:

  1. Open Source knowhow
  2. Materials at fundamental cost
  3. Labor

Markup cost:

  1. Proprietary design
  2. protectionism
  3. marketing
  4. HR
  5. legal
  6. subcontractor markup
  7. profit
  8. financing cost
  9. labor
  10. subcontracted labor
  11. outsourcing
  12. resale and retail as opposed to wholesale or commodity
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