One vehicle is leased for a fixed price per month of $350. But you also change an insurance fee of $50 per month that you do not want included in the lease fee. On top of that there is a charge for miles, but only if you drive more than 1,000 miles per period. Per mile the charge would be $0.50. There is also the signup fee of $500 at contract signing.
Define this contract as follows, but take into consideration that other ways may lead to the same result:
|
Charge Category |
Subcategory |
Charge Level |
Invoice |
Rate |
Adjustments |
||
|---|---|---|---|---|---|---|---|
|
% Before |
Min. |
Free Up To |
|||||
|
Usage Charges |
Monthly Costs |
Transaction |
Yes |
$350 |
|||
|
Usage Charges |
Insurance Fee |
Transaction |
Yes |
$50 |
|||
|
Usage Charges |
Usage Based - Miles |
Transaction |
Yes |
$0.50 |
$500 |
||
|
One Time Charge |
Signup Fee |
Transaction |
Yes |
$500 |
|||
The car went 900 miles the first month. The Invoice for this month will be $900.00:
|
Charge Category |
Subcategory |
Charge Level |
Amount |
|---|---|---|---|
|
Usage Charges |
All |
Charge Category |
$400 |
|
One Time Charges |
All |
Charge Category |
$500 |
|
Usage Charges |
Monthly |
Charge Subcategory |
$350 + $50 = $400 |
|
Usage Charges |
Usage Based |
Charge Subcategory |
$450 - $500 = $0 |
|
One Time Charges |
Beginning of Contract |
Charge Subcategory |
$500 |
The car went 1100 miles the second month. The Invoice for this month will be $450.00:
|
Charge Category |
Subcategory |
Charge Level |
Amount |
|---|---|---|---|
|
Usage Charges |
All |
Charge Category |
$400 + $50 = $450 |
|
Usage Charges |
Monthly |
Charge Subcategory |
$350 + $50 = $400 |
|
Usage Charges |
Usage Based |
Charge Subcategory |
$550 - $500 = $50 |