Assessment of Fuel Economy Technologies for Light-Duty Vehicles

TABLE F.1 Components of Manufacturer’s Suggested Retail Price (MSRP) Equivalent RPE: ANL Method

Cost Category	Cost Contributor	Relative to Cost of Vehicle Manufacture	Share of MSRP (%)
Vehicle manufacture	Cost of manufacture	1.00	50.0
Production overhead	Warranty	0.10	5.0
	R&D engineering	0.13	6.5
	Depreciation and amortization	0.11	5.5
Corporate overhead	Corporate overhead, retirement, health	0.14	7.0
Selling	Distribution, marketing, dealers	0.47	23.5
Sum of costs		1.95	97.5
Profit	Profit	0.05	2.5
Total contribution to MSRP		2.00	100.0
SOURCE: Vyas et al. (2000).

TABLE F.2 Components of MSRP: Estimated by Borroni-Bird

Cost Category	Cost Contributor	Relative to Cost of Vehicle Manufacture	Share of MSRP (%)
Vehicle manufacture	Materials	0.87	42.4
	Labor, other manufacturing costs	0.13	6.3
Fixed cost	Transportation and warranty	0.09	4.4
Fixed cost	Amortization and depreciation, engineering R&D, pension and health care, advertising, and overhead	0.44	21.5
Selling	Price discounts	0.10	4.9
	Dealer markup	0.36	17.6
Sum of costs		1.99	97.1
Profit		0.06	2.9
MSRP		2.05	100.0
SOURCE: As reported by Vyas et al. (2000).

TABLE F.3 Components of Retail Price Equivalent: EEA, Inc., Method

Cost Category	Cost Contributor	Relative to Cost of Vehicle Manufacture	Share of MSRP (%)
Vehicle manufacture	Division costs	0.72	33.6
	Division overhead	0.14	6.5
	Assembly labor and overhead	0.14	6.5
Overhead	Manufacturing overhead	0.22	10.3
	Amortized engineering, tooling, and facilities	0.26	12.1
Selling	Dealer margin	0.49	22.9
Sum of costs		1.97	92.1
Profit		0.17	7.9
Total		2.14	100.0
SOURCE: EEA, Inc. (1995), as reported by Vyas et al. (2000).

TABLE F.4 Comparison of Markup Factors