Other Calculations

Tooling cost payback per part is calculated with the following formula:

Tooling Cost Payback Per Part = Hard Tooling Cost /
(Part Annual Volume x Components Per Product x Payback Period)

Tooling cost payback per part depends on the following:

• Hard tooling cost (see Tooling Cost)

• Part annual volume

• Components per product

• Payback period (either default plant variable or part production life)