Material costs only dominate your price if 1) you're minimally improving the material, and 2) you're selling so many units that all of your fixed costs get spre

Material costs only dominate your price if 1) you're minimally improving the material, and 2) you're selling so many units that all of your fixed costs get spread very thin. Both assumptions are not likely true for Boosted Boards. If they sell 10,000 boards per year, each $1 million in overhead costs equal $100 per board sold. And even the companies that sell 100 million units per year, like Apple, have to spend a lot more than material costs on assembly, testing, support, warranty repair, payments processing, marketing, and probably uniquely high liability insurance costs for Boosted Boards.