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

Calculate the minimum Material Cost per segment using the following equation and table below:

Minimum Material Cost $=[($Lowest Acceptable MTBF $*0\mathrm{.}30)/1000]+$ Trailing Edge Material Cost

Minimum Labor Cost

Calculate the minimum Labor Cost for each segment. Assume a base labor cost of $$11\mathrm{.}20($$$11\mathrm{.}20$ is a rough estimate of labor cost used solely to illustrate the Margin Potential Concept$).$

Minimum Labor Cost $=[$$$11\mathrm{.}20-(1\mathrm{.}12*$ Automation Ratings Below$)]+1\mathrm{.}12$

Customer Segment Information