Circular Economy, Recycling & Remanufacturing worked example

Refurbishment Labor Cost at 87% units expected to require refurbishment labor: a worked example

What does the result look like when units expected to require refurbishment labor reaches 87%? The full calculation is worked below with real intermediate numbers. a team needs to staff a refurbishment line, quote labor, or compare repair standard work for a refurbishment batch, repair center shift, or product family

The inputs for this scenario

  • Returned units entering refurbishment: 960 units (unchanged)
  • Labor cost per refurbished unit: 38 $ / unit (unchanged)
  • Units expected to require refurbishment labor: 87 % (raised for this scenario; the documented default is 76)
  • Fixed training, tooling, fixture, or line setup cost: 3,200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable refurbishment labor cost = returned units entering refurbishment × labor cost per refurbished unit × units expected to require refurbishment labor) to the inputs above produces each figure below.
  • At this operating point the engine returns 34,938 total refurbishment labor cost for total refurbishment labor cost, the number this scenario is built around.
  • At this operating point the engine returns 36.39 $ / piece for labor cost per returned unit.
  • At this operating point the engine returns 31,738 $ for variable refurbishment labor cost.
  • At this operating point the engine returns 3,200 $ for fixed training, tooling, fixture, or line setup cost.

How this compares with the baseline

  • Against the tool's baseline example, where units expected to require refurbishment labor sits at 76% and the headline result is 30,925 total refurbishment labor cost, this scenario comes in 12.98% above the baseline at 34,938 total refurbishment labor cost.
  • A figure at this level is achievable when units expected to require refurbishment labor is genuinely sustained, not just peaked for a shift. It models labor only at an average per-unit rate, so it will understate cost if your return stream has a wide spread between light cosmetic refurb and heavy core rebuilds.

Results at a glance

  • Total refurbishment labor cost: 34,938 total refurbishment labor cost (headline result)
  • Labor cost per returned unit: 36.39 $ / piece
  • Variable refurbishment labor cost: 31,738 $
  • Fixed training, tooling, fixture, or line setup cost: 3,200 $

Run it with your numbers

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

Last reviewed 2026-05-12.