Fixed Operations Profitability Calculator

Reliable Robots
Reliable Robots
Fixed Operations Profitability Calculator

Fixed Operations Profitability Calculator

Explore how billed labour hours influence overhead, operating profitability, and service department margins. All amounts are in CAD.

Low utilization = 50% of medium-case hours. High utilization = 150% of medium-case hours.

Profitability Scenarios

Monthly Operating Results

Metric Low Medium High

Monthly Operating Profit / Loss

Break-Even Billed Hours

Monthly hours needed to cover modelled costs.

Overhead per Hour Reduction: Low to High

Reduction in allocated fixed overhead per billed hour.

This simplified labour-only model excludes parts revenue, parts costs and margins, taxes, financing, and other dealership business lines. Variable costs should include costs that increase with billed hours, without double-counting fixed overhead. Scenarios assume sufficient technician capacity and customer demand to achieve the billed-hour volumes.

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