We all know the mantra. We have heard it a gazillion times and it is getting old. The companies should realize this. In this equation, profit = retail price - production costit is not the "production cost" part that is fixed. It is the "retail price" part. You need to start from that and then see how you can squeeze the production cost such that profit will be a positive number. If you work out you cannot do that, then don't even start. Do not attempt to cheat by increasing the retail price! It won't work.
profit = retail price - production cost