This article presents a simple cost/pricing system that is reasonably accurate and could easily be recalculated if the yearly cost of any of the basic cost components change. Using the example of a commercial heat treating facility, the operational details are categorized as atmosphere processes, induction processes, aluminum processes, high-heat processes, and secondary processes. For the purpose of calculating the heat treatment processing cost per hour and the selling price for a piece of equipment, the costs are separated into direct costs, allocated costs, capitalized cost, and general and administrative costs. The article discusses the techniques involved in allocating...