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    Answer - 2

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    Yasir Rahim
    The document contains information about modified vehicle sales settings including total sales, new sales, return sales, acquisition costs, and lifetime profits for different vehicle models. It compares the profits between two scenarios and finds a small increase in profits from changes to some of the settings.

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    Answer - 2

    Uploaded by

    Yasir Rahim
    12 views3 pages
    The document contains information about modified vehicle sales settings including total sales, new sales, return sales, acquisition costs, and lifetime profits for different vehicle models. It compares the profits between two scenarios and finds a small increase in profits from changes to some of the settings.

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    © © All Rights Reserved

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    The document contains information about modified vehicle sales settings including total sales, new sales, return sales, acquisition costs, and lifetime profits for different vehicle models. It compares the profits between two scenarios and finds a small increase in profits from changes to some of the settings.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    12 views3 pages

    Answer - 2

    Uploaded by

    Yasir Rahim
    The document contains information about modified vehicle sales settings including total sales, new sales, return sales, acquisition costs, and lifetime profits for different vehicle models. It compares the profits between two scenarios and finds a small increase in profits from changes to some of the settings.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 3

    Modified Settings

    Fixed Costs $120,000

    Car CSX RSX TSX TL MDX RL


    Total Sales 79 68 114 212 148 35
    New Sales 58 34 94 167 112 32
    Return Sales 21 34 20 45 36 3
    Avg. Markup 8.0% 7.0% 8.0% 8.0% 8.0% 8.0%
    Return (Yrs) 4.00 4.00 4.00 4.00 4.00 4.00
    Retain Rate 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%
    Yr. Main Cst $10 $10 $10 $10 $10 $10
    Disc. Rate 5% 5% 5% 5% 5% 5%

    Acq. Cost $241 $241 $241 $241 $241 $241


    Dealer Cost $29,500 $32,500 $39,800 $46,000 $57,200 $73,900
    Avg. Price $31,860 $34,775 $42,984 $49,680 $61,776 $79,812
    T Life Maint $3,432 $2,954 $4,952 $9,209 $6,429 $1,520
    Tot. Acq. $14,004 $8,209 $22,696 $40,322 $27,042 $7,726
    Unit Gross $2,360 $2,275 $3,184 $3,680 $4,576 $5,912
    T Gr Lifetime $199,044 $165,052 $389,243 $838,051 $729,068 $223,196
    T Gr Net of Acq. $185,040 $156,842 $366,547 $797,729 $702,026 $215,470

    Profit Comparison - Two Scenarios ROM From Changes in Acquisition Costs, Fixed
    PROFIT PROFIT
    MOD PROFIT $2,423,653 INC COST $391
    BASE PROFIT $2,422,632 INC PROF $1,021 2.6112531969
    GAIN $1,021 ROM 261.11%
    Base Case
    Fixed Costs $120,000

    Car CSX RSX TSX TL MDX RL


    Total Sales 79 59 114 212 148 35
    New Sales 58 34 94 167 112 32
    21 25 20 45 36 3
    Avg. Markup 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
    Return (Yrs) 4.00 4.00 4.00 4.00 4.00 4.00
    Retain Rate 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%
    Yr. Main Cst $10 $10 $10 $10 $10 $10
    Disc. Rate 5% 5% 5% 5% 5% 5%

    Acq. Cost $241 $241 $241 $241 $241 $241


    Dealer Cost $29,500 $32,500 $39,800 $46,000 $57,200 $73,900
    Avg. Price $31,860 $35,100 $42,984 $49,680 $61,776 $79,812
    T Life Maint $3,432 $2,563 $4,952 $9,209 $6,429 $1,520
    Tot. Acq. $14,004 $8,209 $22,696 $40,322 $27,042 $7,726
    Unit Gross $2,360 $2,600 $3,184 $3,680 $4,576 $5,912
    T Gr Lifetime $199,044 $164,031 $389,243 $838,051 $729,068 $223,196
    T Gr Net of Acq. $185,040 $155,821 $366,547 $797,729 $702,026 $215,470

    anges in Acquisition Costs, Fixed Costs, and Lifetime Maintenance Costs


    Maint Cost Return Period Retention Rate Discount Rate Gross Rate Net Rate
    $0 1.00 0.0% 0% 2.0% 0.0%
    $5 1.25 2.5% 1% 2.2% 0.1%
    $10 1.50 5.0% 2% 2.4% 0.2%
    $15 1.75 7.5% 3% 2.6% 0.3%
    $20 2.00 10.0% 4% 2.8% 0.4%
    $25 2.25 12.5% 5% 3.0% 0.5%
    $30 2.50 15.0% 6% 3.2% 0.6%
    $35 2.75 17.5% 7% 3.4% 0.7%
    $40 3.00 20.0% 8% 3.6% 0.8%
    $45 3.25 22.5% 9% 3.8% 0.9%
    $50 3.50 25.0% 10% 4.0% 1.0%
    $55 3.75 27.5% 11% 4.2% 1.1%
    $60 4.00 30.0% 12% 4.4% 1.2%
    $65 4.25 32.5% 13% 4.6% 1.3%
    $70 4.50 35.0% 14% 4.8% 1.4%
    $75 4.75 37.5% 15% 5.0% 1.5%
    $80 5.00 40.0% 16% 5.2% 1.6%
    $85 5.25 42.5% 17% 5.4% 1.7%
    $90 5.50 45.0% 18% 5.6% 1.8%
    $95 5.75 47.5% 19% 5.8% 1.9%
    $100 6.00 50.0% 20% 6.0% 2.0%
    $105 6.25 52.5% 6.2% 2.1%
    $110 6.50 55.0% 6.4% 2.2%
    $115 6.75 57.5% 6.6% 2.3%
    $120 7.00 60.0% 6.8% 2.4%
    $125 7.25 62.5% 7.0% 2.5%
    $130 7.50 65.0% 7.2% 2.6%
    $135 7.75 67.5% 7.4% 2.7%
    $140 8.00 70.0% 7.6% 2.8%
    $145 8.25 72.5% 7.8% 2.9%
    75.0% 8.0% 3.0%
    77.5% 8.2% 3.1%
    80.0% 8.4% 3.2%
    82.5% 8.6% 3.3%
    85.0% 8.8% 3.4%
    87.5% 9.0% 3.5%
    90.0% 9.2% 3.6%
    92.5% 9.4% 3.7%
    95.0% 9.6% 3.8%
    97.5% 9.8% 3.9%
    100.0% 10.0% 4.0%

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