Credit Rates for Turn In of Reparables
MACOM FY93 FY 94 FY 95 FY 96 FY 95-96 Change
ACALA .490 .476 .536 .512 (4%)
ATCOM .490 .505 .566 .542 (4%)
CECOM .490 .452 .513 .489 (5%)
MICOM .490 .548 .609 .585 (4%)
- Extended cost of reparables = AMDF Price x (1-Credit Rate) x Demand Quantity
- FY 96 decrease in credit rate increased extended cost of reparables by 4-5 percent
- Effect of credit rate is multiplicative not additive