[kwamenum86]

How do you arrive at this figure? When you purchase items like t-shirts and cd's in bulk you usually get a pretty sizable discount.

[bkrausz]

I looked into it...he's a little high for just flat cost, but there is a lot of labor I didn't account for:

http://news.ycombinator.com/item?id=1382563

[axiom]

COGS + shipping + logistics

Also, founders' time, which is probably the most costly part.