Heat Exchanger, Coil & Radiator Manufacturing worked example

Packaging Cost at 92% packaging cost recovery rate: a worked example in heat exchanger, coil & radiator manufacturing

What does the result look like when packaging cost recovery rate reaches 92%? The full calculation is worked below with real intermediate numbers. Use it when crates, foam, caps, desiccant, VCI bags, pallets, returnable racks, or export packaging need to be included in a quote or cost review.

The inputs for this scenario

  • Packaged heat exchangers shipped: 100 units (unchanged)
  • Packaging material cost per unit: 45 $ / unit (unchanged)
  • Packaging cost recovery rate: 92 % (raised for this scenario; the documented default is 80)
  • Fixed crating and setup cost: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Captured packaging cost = packaged heat exchangers × packaging cost per unit × packaging cost capture + fixed packaging setup cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for captured packaging cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for packaging cost per shipped unit.
  • At this operating point the engine returns 4,140 $ for captured unit packaging cost.
  • At this operating point the engine returns 250 $ for fixed packaging setup cost.

How this compares with the baseline

  • Against the tool's baseline example, where packaging cost recovery rate sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • A figure at this level is achievable when packaging cost recovery rate is genuinely sustained, not just peaked for a shift. The recovery rate is a blanket percentage; it does not model unit-by-unit variation between a small brazed plate exchanger and an oversized industrial radiator that needs a bespoke crate.

Results at a glance

  • Captured packaging cost: 4,390 $ (headline result)
  • Packaging cost per shipped unit: 43.9 $ / piece
  • Captured unit packaging cost: 4,140 $
  • Fixed packaging setup cost: 250 $

Run it with your numbers

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

Last reviewed 2026-05-12.