Calculating the current market price of the raw material and the salvage value of the re-cycled chips with the machining cycle time, we derive a fair unit price based on lot size, set up charges and secondary operations (such as identification marking and packaging/shipping requirements). Every dollar saved in production of the product falls straight to the bottom line. For a company with a 10% margin, a dollar saved is equal to $10 in sales. In today's global economy many companies are finding it easier to increase profits by growing savings as opposed to growing sales.