Manufacturing Batch Scrap Quote Calculator

Method and assumptions

Input units = ceiling(good units ÷ (1 − scrap share)). Scrap allowance = input units − good units. Batch cost = input units × input cost + setup cost. Quote per good unit = batch cost ÷ good units ÷ (1 − target margin); batch quote multiplies that unit quote by required good units.

Worked example

For 1,000 good units at 5% scrap, plan 1,053 inputs, a 53-unit allowance. At $4.20 per input plus $800 setup, batch cost is $5,222.60 or $5.22 per good unit. A 20% target margin gives about $6.53/unit and a $6,528.25 batch quote.

How to use the result

Review the yield allowance with production data before quoting and re-run with alternative scrap scenarios. This arithmetic excludes machine capacity, rework, labor variability, materials pricing tiers, and contractual quality tolerances.

Input meanings and limits

• Good units required: Finished saleable units requested.
• Expected scrap share of input units: Must be below 100%; enter your own estimate.
• Cost per input unit: Variable cost incurred for each input unit, including scrap.
• Batch setup cost: Fixed cost for this production batch.
• Target contribution margin: Share of quote remaining after modeled batch cost.

Inputs accept finite, nonnegative values in the displayed ranges; percentages are bounded to 0–100% (with 99.99% maximum where division by the remaining share is used), and whole-unit or month fields require integers. Currency figures are shown in USD for convenience; enter values in one consistent currency. This is a planning worksheet, not financial, legal, tax, or accounting advice.

Related calculators

Purchase order landed unit cost calculator and Wholesale and retail tier margin calculator.