| Tier I Supplier/Division Cost |
= | [Materials + Direct
Labor+ Manufacturing Overhead] x [1 + Supplier Overhead+ Supplier Profit] + Tooling Expense+ Facilities Expense+ Engineering Expense |
| Tier II Automanufacturer Cost |
= | [Supplier Cost +
Assembly Labor+ Assembly Overhead] x [1 + Manufacturing Overhead+ Manufacturing Profit] + Engineering Expense+ Tooling Expense + Facilities Expense |
| Tier III Retail Price Equivalent |
= | Manufacturer Cost x Dealer Margin |
| NOTES: | ||
| Supplier Overhead | = | 0.20 |
| Supplier Profit | = | 0.20 |
| Manufacturer Overhead | = | 0.25 |
| Manufacturer Profit | = | 0.20 |
Dealer Margin |
= | 0.25 |