Margin Potential = Maximum Price - Minimum Unit Costs Price Use the information table below to find the maximum price that customers deem acceptable. You can find this in the Customer Buying Criteria for each segment Minimum Material Cost Minimum Labor Cost Calculate the minimum Material Cost per segment using the following Calculate the minimum Labor Cost for each segment. Assume a base equation and table below: labor cost of $11.20 (511.20 is a rough estimate of labor cost used Minimum Material Cost = [(Lowest Acceptable MTBF*0.30) / 1000] + solely to illustrate the Margin Potential Concept). Trailing Edge Position Cost Minimum Labor Cost = ($11.20 - (1.12 * Automation Ratings Below)] + 1.12 Leading Edge Material Cost Lowest Acceptable MTBF Automation Level (out of 10) 8.0 $7.80 Customer Segment Information Trailing Edge Material Cost Traditional $3.80 Low End $1.00 High End $6.00 Performance $4.50 Size $4.50 $5.00 10.0 14,000 12.000 20,000 22.000 Maximum Price $30.00 $25.00 $40.00 $35.00 $35.00 $10.00 5.0 $8.50 6.0 $8.50 16,000 6.0 Margin Potential Maximum Price Minimum Material Cost Minimum Labor Cost Contribution Margin Contribution Margin ($) (%) 0 Incorrect value entered Incorrect value entered Product Name Traditional Able Low End Acre High End Adam Performance Aft 25 0 Incorrect value entered Size Agape The Round 0 Capstone Courier