Industrial Heat Pumps & Electrified Thermal Systems worked example
Coil Scrap Cost at 72% scrap cost charged to this scope: a worked example
Here is what the math looks like when conditions slip. We hold every other input steady and drop scrap cost charged to this scope to 72%, then walk the calculation through step by step. Estimate the dollar impact of scrapped heat pump coils by combining rejected quantity, loaded coil cost, allocated scope, and fixed handling or disposition cost.
The inputs for this scenario
- Scrapped heat pump coils: 14 coils (held at the documented default)
- Replacement cost per coil: 950 $ / coil (held at the documented default)
- Scrap cost charged to this scope: 72 % (the input this scenario stresses; the baseline uses 100)
- Fixed scrap handling and disposition cost: 800 $ (held at the documented default)
Working through the calculation
- The calculation starts from the formula this tool documents: Variable coil scrap cost = scrapped heat pump coils × replacement cost per coil × scrap cost charged to this scope.
- Total coil scrap cost works out to 10,376 $ at these inputs, and this is the headline figure for the scenario.
- Replacement cost per coil works out to 741 $ / coil at these inputs.
- Variable coil scrap cost works out to 9,576 $ at these inputs.
- Fixed scrap handling and disposition cost works out to 800 $ at these inputs.
How this compares with the baseline
- Against the tool's baseline example, where scrap cost charged to this scope sits at 100% and the headline result is 14,100 $, this scenario comes in 26.41% below the baseline at 10,376 $.
- The practical read: the gap between this scenario and the baseline is entirely attributable to scrap cost charged to this scope, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It treats replacement cost per coil as a single blended figure; if you mix small reversing-valve coils and large evaporator coils, run them separately or your variable cost will be distorted.
Results at a glance
- Total coil scrap cost: 10,376 $ (headline result)
- Replacement cost per coil: 741 $ / coil
- Variable coil scrap cost: 9,576 $
- Fixed scrap handling and disposition cost: 800 $
Run it with your numbers
- To rerun this with your own numbers, open the live Coil Scrap Cost calculator, set scrap cost charged to this scope to your actual value, and adjust the remaining inputs to match your operation.
Last reviewed 2026-05-12.