North Country Auto Case

Chapter 5 advance Centers 201 Country Auto, Inc. {Liddy, part owner of conglutination Country Auto, Inc., was feeling pretty the new control systems late put in place for his five departtiers (new and used cable car sales, service, body, and parts departments) . .escrioes eacn aepartment. Mr. Liddy strongly believed in the concept geach department one by one as a attain center. But he in like manner recoghl3.llengeof start upting his managers to buy in to the system by organize::.:ffotthe sound of the principalship. Untty Auto, Inc., was a franchised dealer and factory-authorized llter for Ford, Saab, and Volkswagen. Multiple franchises were beore common in the 1980s. But the value of multiple franchises. did f guidebook, published monthly, was, at best, a near estimate of liquidata; value. Actual values vary daily with the supply-demand balance at auto .~\ tions. These variances could be as much as 25 percent of the book value,. . ......... Ms. Robbins believed that she could deal the trade-in quickly at $5,000 a.!: earn a good margin, so she chose to carry it in inventory instead of wholes .

1::; Chapter 5 Profit Centers 205 206 Part One The Management Control Environment Fmance fees consist of income that the dealer earns on dealer-sourced extended warranties sold through the dealership. auto loans. It also includes the dealers commission on service contracts and it for a value estimated to be $3,500. Mr. Walker, in turn, used the $3,500 value in calculating his actual profit on the new car sale. In performing the second maintenance check on the trade-in, the service department describe that the front wheels would need new brake pads and rotors and that the rear ingress lock assembly was jammed. The retail estimates for repair would be $ccc for the brakes ($125 in parts, $175 in labor) and $75 to fix the lock assembly ($30 in parts, $45 in labor). Cleaning and touch-up (performed by service department as a part of the service order for lock... If you want to get a full essay, order it on our website: Orderessay

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