Tier I Supplier/Division Cost |
= | [Materials + Direct
Labor+ Manufacturing Overhead] x [1 + Supplier Overhead+ Supplier Profit] + Tooling Expense+ Facilities Expense+ Engineering Expense |
Tier II Automanufacturer Cost |
= | [Supplier Cost +
Assembly Labor+ Assembly Overhead] x [1 + Manufacturing Overhead+ Manufacturing Profit] + Engineering Expense+ Tooling Expense + Facilities Expense |
Tier III Retail Price Equivalent |
= | Manufacturer Cost x Dealer Margin |
NOTES: | ||
Supplier Overhead | = | 0.20 |
Supplier Profit | = | 0.20 |
Manufacturer Overhead | = | 0.25 |
Manufacturer Profit | = | 0.20 |
Dealer Margin |
= | 0.25 |