The Manager wanted to know if his Engineer's request for an investment of USD30,000 to improve the Process Yield from 95% to 99% will pay back itself and with what period of time.
Through this Target Costing software, he found that he'd be able to shave off USD0.10147 per unit. With average volume of 930,000 per mth, the ROI would be >USD94,000 per month or well over USD1M a year!!
With this critical information, other less impactful projects were then put on hold while full support given to this project.