In pricing an item, this expert advised, you ought to double your manufacturing costs. Olsen and Anderson didn't know their manufacturing cost, so they guessed a figure and doubled it. Then they realized they might have to sell the modules through sales representatives, so they tacked on another 15 percent.
From "The Ultimate Entrepreneur: The Story of Ken Olsen and Digital Equipment Corporation".
A similar pricing story is also in "CEO" by Sandra Kurtzig founder of now defunct ASK.