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Margin Analysis Print
Topic Contents
Margin Analysis
Margin Potential
Tables 8.3 and 8.4
Form 4
Tables 8.3 and 8.4

Table 8.3 Material Positioning Component Costs

  Trailing Edge Leading Edge
Traditional
$3.80
$7.80
Low End
$1.00
$5.00
High End
$6.00
$10.00
Performance
$4.50
$8.50
Size
$4.50
$8.50

The Trailing Edge Positioning Cost indicates the cost of material for products placed in the upper-left quadrant of the fine cut circle, where products are larger in size and slower in performance. Consequently, the material cost is less than for products at the Leading Edge (the lower-right quadrant), where size is smaller and performance is faster. These costs drift with the circle.

Table 8.4 Minimum Material Costs For The Traditional Segment

Minimum Reliability Component Cost $0.0003 x 14,000 = $4.20
Trailing Edge Positioning Component Cost $3.80
Total $8.00