Industrial Equipment, Machinery & Capital Goods worked example

Custom Option Cost at 54% option adoption or quote share: a worked example

This worked example runs the custom option cost numbers for a tougher week than the baseline: 54% option adoption or quote share instead of the typical 75%. Estimate custom option cost from optioned machines, option cost per machine, option adoption share, and fixed design or validation cost.

The inputs for this scenario

  • Machines with the custom option: 6 machines (held at the documented default)
  • Option cost per machine: 18,500 $ / machine (held at the documented default)
  • Option adoption or quote share: 54 % (the input this scenario stresses; the baseline uses 75)
  • Fixed option design and validation cost: 22,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable custom option cost = machines with the custom option × option cost per machine × option adoption or quote share.
  • Total custom option cost works out to 81,940 $ at these inputs, and this is the headline figure for the scenario.
  • Option cost per machine works out to 13,657 $ / machine at these inputs.
  • Variable custom option cost works out to 59,940 $ at these inputs.
  • Fixed option design and validation cost works out to 22,000 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where option adoption or quote share sits at 75% and the headline result is 105,250 $, this scenario comes in 22.15% below the baseline at 81,940 $.
  • Use it when deciding whether to offer an engineered option, setting its price, or amortizing non-recurring engineering across a build run. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Total custom option cost: 81,940 $ (headline result)
  • Option cost per machine: 13,657 $ / machine
  • Variable custom option cost: 59,940 $
  • Fixed option design and validation cost: 22,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Custom Option Cost calculator, set option adoption or quote share to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.