A B Company

Revenue 100 150 150 idle 500 SP

7500 UF
Cost 80 100 80
Add.cost 20 20
Profit 20 30 50 50

HO UK
China India Mau
Revenue 1000 1500 1400

Cost 750 1400 1000

Profit 250 100 400

Tax 20% 30% 5%
tax amount 50 30 20
15
 New Car Old Car Service Trade-in
List price 14400
Cost 12240
Old ex.price 6500

repair 840
retail 7100
whole price 6100
rear axle 640
Blue book 5500-5800
value of old as 5000

accounting value of the ol 6500

Cash received from custo 7900

service dept 1480 1480

Outside 2000 1960 2040 2000

estimated price 1594 741 853

No trade-in
New Car Old Car Service Company
Revenue 14400 0 0 14400
Less: Dist @8% 1152 1152
Net 13248 13248

Cost 12240 0 0 12240

Profit 1008 1008

1 2
trade-in @ 6500 TP = 6500 trade-in @ 5000 TP = 5000
New Car Old Car Service Company New Car Old Car

Revenue Revenue
Cash from customer 7900 7900 Cash from 7900
Old car 6500 7100 840 7100 Old car 5000 7100

Total revenue 14400 7100 840 15000 Total reven 12900 7100

Cost 12240 6500 840 12240 Cost 12240 5000

840 840 2000
Total cost 12240 7340 840 13080 Total cost 12240 7000
Profit 2160 -240 0 1920 Profit 660 100

Colin Drury
 3
trade-in @ 5000 TP = 5000
Service Company New Car Old Car Service Company

Revenue
7900 Cash from 7900 7900
2000 7100 Old car 5000 7100 2000 7100

2000 15000 Total reven 12900 7100 2000 15000

1480 12240 Cost 12240 5000 1594 12240

1480 2000 1594
1480 13720 Total cost 12240 7000 1594 13834
520 1280 1280 Profit 660 100 406 1166 1166
 4
trade-in @ 5260 TP = 5260
New Car Old Car Service Company

Revenue
Cash from 7900 7900
Old car 5260 7100 1480 7100

Total reven 13160 7100 1480 15000

Cost 12240 5260 1480 12240

1480 1480
Total cost 12240 6740 1480 13720
Profit 920 360 0 1280 1280