Theterm "relevantrange" mentionedaboveis used to refer to theoutput range at which thefirmexpects to be operatingin the future, andis equivalent to normalcapacity.
Superglass's board said that once the savings had been achieved the firm could be run at an operating profit inthefuture, even given the current depressed market for insulation.
This gives it an opportunity to charge higher prices by expanding into the premium product segment, thereby increasing its revenues and operating margins inthefuture.