Blow Molding & Hollow Plastic Products worked example

Unit Manufacturing Cost at 110% manufacturing cost allocation share: a worked example

Push manufacturing cost allocation share up to 110% and the picture changes. This example computes every intermediate figure at that operating point. a blow molding manufacturer needs to quote or review cost per bottle, container, drum, tank, reservoir, duct, or hollow part

The inputs for this scenario

  • Good blow molded units: 50,000 units (unchanged)
  • Variable manufacturing cost per unit: 0.22 $ / unit (unchanged)
  • Manufacturing cost allocation share: 110 % (raised for this scenario; the documented default is 100)
  • Fixed tooling, setup, or overhead cost: 2,600 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Allocated variable manufacturing cost = good blow molded units × variable manufacturing cost per unit × manufacturing cost allocation share) to the inputs above produces each figure below.
  • At this operating point the engine returns 14,425 $ for total unit manufacturing cost, the number this scenario is built around.
  • At this operating point the engine returns 0.29 $ / unit for manufacturing cost per unit.
  • At this operating point the engine returns 11,825 $ for allocated variable manufacturing cost.
  • At this operating point the engine returns 2,600 $ for fixed tooling, setup, or overhead cost.

How this compares with the baseline

  • Against the tool's baseline example, where manufacturing cost allocation share sits at 100% and the headline result is 13,350 $, this scenario comes in 8.05% above the baseline at 14,425 $.
  • It computes total manufacturing cost by allocating a per-unit variable cost across good units and adding fixed tooling, setup or overhead. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total unit manufacturing cost: 14,425 $ (headline result)
  • Manufacturing cost per unit: 0.29 $ / unit
  • Allocated variable manufacturing cost: 11,825 $
  • Fixed tooling, setup, or overhead cost: 2,600 $

Run it with your numbers

  • Every input above is editable in the live Unit Manufacturing Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.