Fixed Operations Profitability Calculator
Fixed Operations Profitability Calculator
Explore how billed labour hours influence overhead, operating profitability, and service department margins. All amounts are in CAD.
Low utilization = 50% of medium-case hours. High utilization = 150% of medium-case hours.
Profitability Scenarios
Monthly Operating Results
| Metric | Low | Medium | High |
|---|
Monthly Operating Profit / Loss
Monthly hours needed to cover modelled costs.
Reduction in allocated fixed overhead per billed hour.
This simplified labour-only model excludes parts revenue, parts costs and margins, taxes, financing, and other dealership business lines. Variable costs should include costs that increase with billed hours, without double-counting fixed overhead. Scenarios assume sufficient technician capacity and customer demand to achieve the billed-hour volumes.
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