Car Service
... As such, he had divided up the business into three departments: new car sales, used car sales and the service department. ... Question 1 Suppose the new car deal is consummated, with the repaired used car being retailed for $1,850, the repairs costing Shuman $688. ... , new and repaired-used cars sold) is illustrated below: Department: New Car Used Car Service Sales $8,535 (1) $1,850 $688 Cost $6,580 (2) $2,823 (3) $688 --------------------------------------------- Gross Profit $1,955 ($973) $0 Note: 1 Sales included $6,400 which was the list price of the new car as well as sell transfer to the used car department at $2,135. 2 Cost included $4,445 which was the cost price of new car and trade in value of customer’s car at $2,135.