Configure-to-Order & Product Configuration worked example

Customer Option Cost at 110% share of option cost captured: a worked example

What does the result look like when share of option cost captured reaches 110%? The full calculation is worked below with real intermediate numbers. checking cost basis for option pricing and quote margin

The inputs for this scenario

  • Customer-selected option units: 165 option units (unchanged)
  • Cost per selected option unit: 42 $ / option unit (unchanged)
  • Share of option cost captured: 110 % (raised for this scenario; the documented default is 100)
  • Fixed option setup and handling cost: 380 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable customer option cost = customer-selected option units × cost per selected option unit × customer option scope included) to the inputs above produces each figure below.
  • At this operating point the engine returns 8,003 $ for total customer option cost, the number this scenario is built around.
  • At this operating point the engine returns 48.5 $ / piece for customer option cost per configured unit or quote.
  • At this operating point the engine returns 7,623 $ for variable customer option cost.
  • At this operating point the engine returns 380 $ for fixed option setup and handling cost.

How this compares with the baseline

  • Against the tool's baseline example, where share of option cost captured sits at 100% and the headline result is 7,310 $, this scenario comes in 9.48% above the baseline at 8,003 $.
  • A figure at this level is achievable when share of option cost captured is genuinely sustained, not just peaked for a shift. A single cost per option unit averages across options — mixing cheap and expensive options understates the true cost of the premium ones.

Results at a glance

  • total customer option cost: 8,003 $ (headline result)
  • customer option cost per configured unit or quote: 48.5 $ / piece
  • variable customer option cost: 7,623 $
  • fixed option setup and handling cost: 380 $

Run it with your numbers

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

Last reviewed 2026-05-12.