If materials purchased

Allows the costing to incorporate a set amount of setup pcs.
For instance if this was a machined part, a value of 2 here would cost in 2 extra pcs of material over the entire job.
So if the material was 10 dollars each, and you were quoting 5 pcs.
If you set the setup quantity of 1, then the cost of 1 pc of material ($10) would be divided by 5 (the qty your quoting) which is $2.
The $2 would be added on to the final price. The setup qty does not have any margin on it.
It is added after the per piece with margin is calculated.

If a machine

Setup pieces required. Will add the labor costs of X amount of setup pieces to the quote for this machine.