| · APPLIED COMPUTE · INTERNAL |
COGS model: Example Enterprise
Model: Qwen3.6-35B-A3B · 3 cycles · 6 weeks · status HOLD - MODEL
Delivery COGS (with rework)$106,590
Quote$210,000
Gross margin49.2%
Training GPU-hours3,360
Cost by group
| Cost line | Phase | Source | Amount | Share |
|---|---|---|---|---|
| Compute and capacity | $8,400 | |||
| Policy-update GPUs (training) | Cycles | workbook | $3,200 | 3.0% |
| Rollout GPUs (trajectory generation) | Cycles | workbook | $4,800 | 4.5% |
| Evaluation GPUs, per cycle | Cycles | workbook | $300 | 0.3% |
| Baseline evaluation GPUs | Foundation | workbook | $100 | 0.1% |
| Dev and smoke-test GPU time | Foundation | extension | $0 | 0.0% |
| Re-run reserve for failed or pre-empted jobs | Cycles | extension | $0 | 0.0% |
| People and overhead | $77,000 | |||
| Forward-deployed engineering: setup | Foundation | workbook | $7,200 | 6.8% |
| Forward-deployed engineering: per cycle | Engineering | workbook | $21,600 | 20.3% |
| ML research engineering: setup | Foundation | workbook | $8,000 | 7.5% |
| ML research engineering: per cycle | Engineering | workbook | $24,000 | 22.5% |
| Infrastructure engineering: setup | Foundation | workbook | $2,040 | 1.9% |
| Infrastructure engineering: per cycle | Engineering | workbook | $8,160 | 7.7% |
| Delivery coordination: setup | Foundation | workbook | $2,400 | 2.3% |
| Delivery coordination: per cycle | Engineering | workbook | $3,600 | 3.4% |
| Pre-sales scoping engineering | Foundation | extension | $0 | 0.0% |
| Customer success and executive sponsorship | Shared | extension | $0 | 0.0% |
| Security and compliance review | Foundation | extension | $0 | 0.0% |
| Legal and contracting | Shared | extension | $0 | 0.0% |
| Independent verification reviewer (Phase 4) | Handoff | extension | $0 | 0.0% |
| Evaluation and environments | $6,000 | |||
| Baseline graders and environments | Foundation | workbook | $1,500 | 1.4% |
| Graders and environments per cycle | Cycles | workbook | $4,500 | 4.2% |
| External judge / LLM-grader API spend | Cycles | extension | $0 | 0.0% |
| Third-party tool and data API spend | Cycles | extension | $0 | 0.0% |
| Sandbox and environment CPU compute | Cycles | extension | $0 | 0.0% |
| Human quality review (Applied Compute reviewers) | Cycles | extension | $0 | 0.0% |
| Data and storage | $1,500 | |||
| Storage and networking | Shared | workbook | $1,500 | 1.4% |
| Data ingestion and cleaning labour | Foundation | extension | $0 | 0.0% |
| Data labelling vendor spend | Foundation | extension | $0 | 0.0% |
| Object storage for data and checkpoints | Shared | extension | $0 | 0.0% |
| Network egress | Shared | extension | $0 | 0.0% |
| PII redaction and security tooling | Foundation | extension | $0 | 0.0% |
| Platform and tools | $4,000 | |||
| Direct platform support | Shared | workbook | $4,000 | 3.8% |
| On-call and operations cover | Shared | extension | $0 | 0.0% |
| Travel and on-site trips | Shared | extension | $0 | 0.0% |
| Observability and experiment-tracking seats | Shared | extension | $0 | 0.0% |
| Third-party software licences | Shared | extension | $0 | 0.0% |
| Base-model commercial licence | Foundation | extension | $0 | 0.0% |
| Risk | $9,690 | |||
| Insurance allocation (% of direct cost) | Shared | extension | $0 | 0.0% |
| Expected rework allowance | Shared | workbook | $9,690 | 9.1% |
| Total delivery COGS (incl. rework) | $106,590 | 100% | ||
Cost by delivery phase
| Phase | Cost |
|---|---|
| Foundation | $21,240 |
| Engineering | $57,360 |
| Cycles | $12,800 |
| Handoff | $0 |
| Shared | $15,190 |
Workbook lines reproduce the supplied configurator (sheet 02). Extension lines are additional costs the workbook does not carry; they are $0 unless filled in the tool.