Sign In

Service Absorption Rate

Department:

New Vehicle

Service Absorption Rate

%

Calculation

(Service department profits / Dealership's fixed expenses) * 100.

DESCRIPTION

The percentage of total service department profits that cover the fixed expenses of the dealership.

Purpose

To evaluate the service department's ability to offset the fixed costs of the business.

Interpretation

Did you get it right

Optimal:
A higher rate indicates the service department is effectively contributing to overheads.
Alert:
A rate too high may suggest reliance on service profits over vehicle sales.
© Quotus 2024. All rights reserved.
Ressources
Documentation, FAQ and Tutorials
Support
Direct support form
Status
Service Status
News
Latest news and updates
LinkedIn

System Status

QUOTUS Systems are 100% functional.
06/15/2024 05:06:55 am