Printing, Labels & Industrial Converting worked example

Label Scrap Cost at 99% non-recoverable cost share: a worked example

What does the result look like when non-recoverable cost share reaches 99%? The full calculation is worked below with real intermediate numbers. Use it when a registration, die, or print-defect event produces waste and you need to size the financial hit per run.

The inputs for this scenario

  • Labels rejected or scrapped: 4,500 labels (unchanged)
  • Fully loaded cost per label: 0.06 $ / label (unchanged)
  • Non-recoverable cost share: 99 % (raised for this scenario; the documented default is 95)
  • Disposal and job-restart cost: 120 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Label scrap cost = scrapped labels × fully loaded label cost × non-recoverable share + disposal and restart cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 387 $ for total label scrap cost, the number this scenario is built around.
  • At this operating point the engine returns 0.09 $ / piece for label scrap cost per unit.
  • At this operating point the engine returns 267 $ for variable label scrap cost.
  • At this operating point the engine returns 120 $ for fixed label scrap cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where non-recoverable cost share sits at 95% and the headline result is 377 $, this scenario comes in 2.87% above the baseline at 387 $.
  • A figure at this level is achievable when non-recoverable cost share is genuinely sustained, not just peaked for a shift. It assumes one blended per-label cost; if scrap spans jobs with very different material or print complexity, run them separately for accuracy.

Results at a glance

  • Total label scrap cost: 387 $ (headline result)
  • Label scrap cost per unit: 0.09 $ / piece
  • Variable label scrap cost: 267 $
  • Fixed label scrap cost adder: 120 $

Run it with your numbers

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

Last reviewed 2026-05-12.