THE FEUTEX TOOLKIT

Service Contract Renewal Cost

Compare a bundled service contract with incident-based support and expected downtime.

Business workspace● Runs in your browser

01 Your input

ContractcurrencyIncidentsitemsCalloutcurrency/itemHourshours/itemDowntime valuecurrency/hourCovered downtimehours

02 Your result

View or copy raw result data

Result data

Formula

On demand = v.incidents*(v.callout+v.hours*v.downtime_value) ; Contract total = v.contract+v.covered_downtime*v.downtime_value ; Contract saving = v.incidents*(v.callout+v.hours*v.downtime_value)-v.contract-v.covered_downtime*v.downtime_value

Sources and model references

https://openstax.org/books/principles-managerial-accounting/pages/10-3-evaluate-and-determine-whether-to-make-or-buy-a-component

Worked example

Inputs

Contract: 12000 currency
Incidents: 8 items
Callout: 700 currency/item
Hours: 3 hours/item
Downtime value: 400 currency/hour
Covered downtime: 5 hours

Expected results

On demand: 15200 currency
Contract total: 14000 currency
Contract saving: 1200 currency

Load the example in the workspace to reproduce these results. Display rounding does not change the underlying calculation.

How to use this tool

Enter your own assumptions using a consistent currency and period.
Review the scenario outputs and compare alternative inputs.
Check the stated model limits before using the result in an operating plan.

Try this example

{
  "contract": 12000,
  "incidents": 8,
  "callout": 700,
  "hours": 3,
  "downtime_value": 400,
  "covered_downtime": 5
}

Accuracy and scope

Deterministic planning scenario; inputs are assumptions, not forecasts. Excludes taxes, financing, legal requirements and costs not explicitly entered. Source explains the underlying planning framework; this specific scenario arithmetic is original.

Is my data uploaded?

This tool runs locally in your browser. Input and output are not sent to a processing server. Copy or download your result before leaving the page.