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Internal Parts Gross Profit

Department:

Overall Dealership

Internal Parts Gross Profit

$

Calculation

Total revenue from internal parts sales minus the cost of goods sold.

DESCRIPTION

The total gross profit from the sale of internal parts.

Purpose

To evaluate the profitability of internal parts sales and transfer pricing policy

Interpretation

Did you get it right

Optimal:
A high gross profit suggests effective inventory and pricing management.
Alert:
Lower profit margins might indicate a need to revisit pricing or transfer pricing strategies.
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06/15/2024 05:13:23 am