A few months later, it became obvious that the initial cost projections had been far too optimistic. The equipment needed to perform in-house operations would come to about $600,000 rather than the $450,000 estimated. What was more serious, purchased components would exceed budget by at least 38%. Marketing protested that boosting prices to recover these higher costs would severely reduce Unitech’s attractiveness to potential buyers. The compromise: minor redesign to reduce costs, an increase in price, and a decrease in projected profit margins (in the hope that margins would grow over the life of the product).