Method / assumptions / examples
How this calculation works
The result is deterministic: the same measurements always return the same estimate. Here is the relationship and where real-world results can differ.
Formula
Cost per 1,000 = total cost ÷ usable quantity × 1,000
Usable quantity is the produced quantity after the entered waste allowance. Using usable rather than gross pieces makes quotes with different waste assumptions easier to compare.
Worked example
Examples
With 3% expected waste, 48,500 usable pieces cost about $8.76 per thousand.
Common mistakes
What to check before using the result
- Compare like with like: include the same freight, tooling, plates, and setup costs in each quote.
- Use expected saleable output, not gross press count, when waste is economically relevant.
- For tiered quotes, calculate each quantity independently because setup cost is spread differently.
FAQ
Frequently asked questions
What costs should be included?
That depends on the comparison. Material-only CPM is useful for substrates; fully loaded CPM should consistently include labor, setup, tooling, overhead, and freight.
Why use usable quantity?
Customers and downstream processes consume good pieces. Removing expected waste prevents an optimistic unit cost based on pieces that cannot be sold.