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Re: boston745 post# 38990

Saturday, 01/02/2021 5:48:05 PM

Saturday, January 02, 2021 5:48:05 PM

Post# of 89518
a quick back of napkin analysis on potential impact on margins and cost reduction necessary for between zero gross margin and back to 21%... not an accountant so pls correct me if my calcs are incorrect...

So they need to reduce costs by 11% to earn no margin or reduce 30% to get the 21% margin back or somewhere in between...


Car price $60,000 30% $42,000
Gross margin 21% 0%
Cost $47,400 11% $42,000


Car price $60,000 30% $42,000
Gross margin 21% 21%
Cost $47,400 30% $33,180
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