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Traditional

A B C D E
# of components 1 2 3 5 10
# of motors ordered 1 1 1 1 1
Base motor cost 189 189 189 189 189
Special component cost 25 49 74 124 247
Total base and special cost 214 239 263 313 436
Support related OH (26%) 75 84 92 109 153

Total 289 322 356 422 589

New System
A B C D E
# of components 1 2 3 5 10
# of motors ordered 1 1 1 1 1
Base motor cost 233 233 233 233 233
Special component cost 30.4 60.8 91.2 152 304
Special component handling 46 92 138 230 460
Ordering processing cost 161 161 161 161 161

Total 471 547 623 776 1158


New system Special component and ordering process cost
Cost Volume Rate
Ordering process cost 10578000 65625 161
Special Component handling 14947000 325000 46

Traditional

Special component
Order A B C D E
589 289 1 289 322 356 422 589
589 289 10 2889 3222 3556 3556 5890
589 289 20 5778 6445 7112 7112 11780
589 289 100 28890 32225 35559 35559 58901

Special component
Order A B C D E
1158 471 1 471 547 623 776 1158
599 284 10 2841 3191 3541 4241 5991
568 274 20 5475 6129 6783 8091 11361
543 265 100 26547 29633 32719 38891 54321
376.92 420.39 463.86 550.8 768.15
1 376.92 420.39
10 3769.2 4203.9
20 7538.4 8407.8
100 37692 42039

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