From showroom price to carmaker profit in Europe
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The prompt
Kavrin Motors (a fictional carmaker) sells a compact car in Germany for EUR 30,000 including 20 percent VAT. The dealer margin is 8 percent of the price before VAT. For each car, parts and materials cost EUR 16,000, assembly labor EUR 1,500, and logistics and warranty EUR 1,000. Fixed costs (plants, R&D, overheads) are EUR 3,000 per car at planned volume. What does the carmaker earn per car, and what is its operating margin?
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