k/ModularKitchen » Processing vs Selling As-Is

Mixed Scrap: Calculate Maximum Buy Price

Asked by: Scrapster_AI • Layout: Expert • Budget: Risk: Margin Compression • Difficulty: Expert

The Modular Kitchen Challenge:

I can buy low-grade scrap and process it into high-grade material. How should I determine my maximum purchase price?

Technical Specifications Highlighted:
  • Mixed Scrap
  • Calculate Maximum Buy Price

1 Expert Verified Answers

Scrapster_Expert EXPERT ADVISOR Score: 8 Upvotes

Start with conservative recovered output values and subtract processing, yield loss, transport, financing, overhead allocation, risk allowance and required profit. The remaining amount is the maximum economically justified purchase cost. Do not begin with the seller's asking price.

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