I am in a state of confusion. I am doing a project for a rental firm and I need to know the break even point . Assume we have only one type of car and all vehicle will be sold after 2 years or after 100000 KMS. Values available - Number of rentals, Rate per rental, Business overhead for this vehicle, Maintenance cost for this vehicle. I need to take into account the vehicle initial cost, its depreciation and resale value as well. I want to know the number of cars required to break even. You can use fictious value for explanation.
So the equation When I have a total of N cars of same model in my agency would be ,
N( vehicle cost - Resale value + maintenance & repair cost) +Business overhead = Rate per day * no. of rental days. Is there any other factors that I could have possibly missed?
Thank in advance for your help!!!!