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Permalink Reply by William Finsilver on March 23, 2012 at 5:18pm

I think the best way to look at this is by RO. Take the total expense allocated for parts and service and divide by the average number of RO's a month and that number is the gross profit you need per RO to break even.

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Permalink Reply by Leonard Buchholz on March 27, 2012 at 9:39am

Hello Colleen. I am having a little difficulty with your question. Are you asking how to calculate a "true" service absorption number? Or are you trying to calculate a "true" cost per sale number?  

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