Set up the Three Profit Areas:

  

without any The first is a fast lube area that you can set up additional tools or equipment. The Oil change time is 3/10 of an hour. The competitive price to beat is $11 for the labor (ignore parts and parts mark-up at this point). How much profit (if any) can you make if you match the competitive price? Is it at least 15% The second is an alignment profit center. The equipment leasing costs is $14560 per year. The work could be done by either an A the work or B level technician but NOT a C level technician. The labor time on each alignment is 1 hour and the number that could be done per day is 8 on a 5-day work schedule. HINT you must take your bay tie cost and add in the extra hourly cost of the alignment equipment (conversion of the yearly cost to hourly cost is required). The price to beat is $49. Can you deliver this service and still make a targeted profit of 15% The third is a special natural gas, hybrid, and fuel cell repair center, which must be equipped and the bay specially rebuild with special safety features. The work must be done by an A technician. The cost of equipment and rebuilding (including financing costs and owner return on money invested) is $58,000 per year. No one else is doing this type of work and a premium can be charged above the normal labor rate but it is felt that going over $75 per hour will be problematic.