Minimum Material Cost Calculate the minimum Material Cost per segment using the following equation and table below: Minimum Material Cost = [(Lowest Acceptable MTBF * 0.30) / 1000] + Trailing Edge Position Cost Material Position Component Costs Trailing Edge Cost Leading Edge Cost Low Tech $1.50 $8.50 High Tech $4.00 $10.00 Minimum Labor Cost Calculate the minimum Labor Cost for each segment. Assume a base labor cost of $11.20 ($11.20 is a rough estimate of labor cost used solely to illustrate the Margin Potential Concept). Minimum Labor Cost = [$11.20 - (1.12 * Automation Ratings Below)] + 1.12 Segment Automation level (out of 10) Low Tech Automation 10.0 HighTech Automation 6.0