Circular Economy, Recycling & Remanufacturing worked example

Refurbishment Labor Cost at 55% units expected to require refurbishment labor: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop units expected to require refurbishment labor to 55%, then walk the calculation through step by step. Estimate labor cost for returned units that require inspection, cleaning, repair, testing, and refurbishment before resale or reuse.

The inputs for this scenario

  • Returned units entering refurbishment: 960 units (held at the documented default)
  • Labor cost per refurbished unit: 38 $ / unit (held at the documented default)
  • Units expected to require refurbishment labor: 55 % (the input this scenario stresses; the baseline uses 76)
  • Fixed training, tooling, fixture, or line setup cost: 3,200 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable refurbishment labor cost = returned units entering refurbishment × labor cost per refurbished unit × units expected to require refurbishment labor.
  • Total refurbishment labor cost works out to 23,264 total refurbishment labor cost at these inputs, and this is the headline figure for the scenario.
  • Labor cost per returned unit works out to 24.23 $ / piece at these inputs.
  • Variable refurbishment labor cost works out to 20,064 $ at these inputs.
  • Fixed training, tooling, fixture, or line setup cost works out to 3,200 $ at these inputs.

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 24.77% below the baseline at 23,264 total refurbishment labor cost.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to units expected to require refurbishment labor, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. 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: 23,264 total refurbishment labor cost (headline result)
  • Labor cost per returned unit: 24.23 $ / piece
  • Variable refurbishment labor cost: 20,064 $
  • Fixed training, tooling, fixture, or line setup cost: 3,200 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Refurbishment Labor Cost calculator, set units expected to require refurbishment labor to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.