It’s a nonsense. You would need to take into account ALL costs. I remember reading an article years ago that worked out Rolex marketing spend in the US compared to sales, and it alone added more than $1000 to each watch. Then you have setting up Boutiques, training, service centres, transportation, insurance, taxation and R&D, rather than just buying a Sellita movement etc. after that you can look at the cost of parts and production.