20% isnt even close. Where did you get this number? In my time working in hardware (across consumer devices like smartphones and specialized devices for indus

20% isnt even close. Where did you get this number? In my time working in hardware (across consumer devices like smartphones and specialized devices for industry) I have never seen a product with only a 20% difference between low volume and mass manufacturing costs. The difference is in the range of 200-1000% when talking about going from 10,000 to a million units, depending on manufacturing setup cost. The lower range is only achievable if your manufacturing line is uninterrupted which I doubt is possible for such small orders and it's impractical for a small government contractor to make many units all at once due to inventory costs and risk. $200 at 10,000 units for a device that sells for $50 or $25 at a million units is par for the course for any hardware product.