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Internal Gross Margin %

Department:

Service Department

Internal Gross Margin %

%

Calculation

(Internal gross profit / Internal sales) * 100.

DESCRIPTION

The percentage of gross margin from internal operations such as service and maintenance performed within the dealership.

Purpose

To measure the profitability of internal services and maintenance operations.

Interpretation

Did you get it right

Optimal:
A higher percentage may indicate a need to review transfer pricing.
Alert:
An excessively high margin could suggest less than optimal transfer pricing.
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06/15/2024 04:35:54 am