what do I mark up on repair stock?

[staffbull]

Hi, I'll try and explain my question

say I buy widget A at a cost of £1, I sell widget A in my shop for £5

when I repair an item using widget A what do I claim back against the profit of the repair?

is it A)£1 the cost to me

or B)£5 the cost it would be to sell?

sorry no C, or phone a friend, and no answers on a postacrd, unless accompanied by a £5 note :-)

TIA

[davidshaw89]

I don't understand your question fully (possibly too late at night after a long day) but here is my attempt to answer it, if this helps;

£5 would be your opportunity cost - so if you used the item to repair something else, you are potentially missing the opportunity to sell the item in question for £5 by only including the value as £1 on your profit calculation

and £1 would be your actual cost to buy - but you might have costs on top of this which are not immediately apparent, such as storage costs etc.

[staffbull]

I don't understand your question fully (possibly too late at night after a long day) but here is my attempt to answer it, if this helps;

£5 would be your opportunity cost - so if you used the item to repair something else, you are potentially missing the opportunity to sell the item in question for £5 by only including the value as £1 on your profit calculation

and £1 would be your actual cost to buy - but you might have costs on top of this which are not immediately apparent, such as storage costs etc.

Thanks, so could I claim it back at the opportunity cost (nearly typed knocks there!!)??