Outdoor Power Equipment worked example

Scrap Cost at 110% scrap rate: a worked example in outdoor power equipment

Push scrap rate up to 110% and the picture changes. This example computes every intermediate figure at that operating point. a quality or cost team needs the scrap cost on a build to target waste and compare it against rework

The inputs for this scenario

  • Scrapped units: 150 units (unchanged)
  • Scrap value per unit: 32 $ / unit (unchanged)
  • Scrap rate: 110 % (raised for this scenario; the documented default is 100)
  • Fixed disposal cost: 400 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable scrap cost = scrapped units × scrap value per unit × scrap rate) to the inputs above produces each figure below.
  • At this operating point the engine returns 5,680 $ for total scrap cost, the number this scenario is built around.
  • At this operating point the engine returns 37.87 $ / piece for scrap cost per affected unit.
  • At this operating point the engine returns 5,280 $ for variable scrap cost.
  • At this operating point the engine returns 400 $ for fixed disposal cost.

How this compares with the baseline

  • Against the tool's baseline example, where scrap rate sits at 100% and the headline result is 5,200 $, this scenario comes in 9.23% above the baseline at 5,680 $.
  • It computes total scrap cost by combining a scrap-rate-weighted material loss with a fixed disposal charge, and reports the cost per affected unit. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total scrap cost: 5,680 $ (headline result)
  • Scrap cost per affected unit: 37.87 $ / piece
  • Variable scrap cost: 5,280 $
  • Fixed disposal cost: 400 $

Run it with your numbers

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

Last reviewed 2026-05-12.