CALCULATIONS/FORMULAS Flashcards
What is Breakeven?
The point at which Revenue=Expenses
What is the formula for breakeven?
Total Revenue - Expenses = Break Even
What are the 8 Direct Costs?
- Maintenance
- Depreciation (Biggest one!)
- Taxes
- Interest
- Liability
- Collision
- Fuel
- Miscellaneous
What are the 4 ways to reduce Expenses/Unit?
- Grow the Fleet
- Hit points of sale
- Sit Tight
- Charge proper rate for right cars
What is the formula for Operating Profit?
Revenue - Breakeven = Operating Profit
What is the formula for Net Profit?
Operating Profit + Vehicle Adjustment= Net Profit
What is the formula for C&I?
of days in the month x DE% x ADR = C&I revenue
What is the formula to find out your Days Earned % (DE%)?
Vehicles on Rent/Vehicles in Fleet= DE%
How do you find Days Earned Growth?
[(This years x DE%) - Last Years] / Last Years = DE GROWTH
What 5 things is C&I composed of?
- Daily Rate
- Hourly Charges
- Mileage
- Additional Driver Fees
- Underage Surcharges
How do you calculate Income Per Car?
C&I + Net Other = Income Per Car
What is the definition of DE Growth?
% of days earned from our CURRENT fleet vs Last Year
How do you LOWER Breakeven?
Larger Fleet
Reduce Costs
Proper Underwriting
What is an Inventory Adjustment?
What we Depreciate our vehicles at VS what we sell our cars for
What are examples of Inventory Adjustment?
Pull UCS’s
Maintain cars
Promote car sales
Be mindful of fleet mix
