View Repair Breakeven Hours

Note: The Repair Breakeven calculation is dynamically updated as repair lines are added, allowing you to determine if it is more cost-effective to repair or replace a part. This includes changes to the Labor Type, Total Units, Part Price, Tax, or Markups/Discounts.

Tip: If the number of repair labor hours is more than the breakeven units, the cost of replacing the part with a new or recycled part may be more cost-effective than repairing it.

Click the Parts or Split View icon in the estimate editor to add parts and labor (repair lines) to the estimate.
Select a part and click View Details.
Select the line for the damaged part to be repaired or replaced.
Select a different Part Type in the list to view the Repair Breakeven comparison for a different part type.
For parts with only one option, you can see the Repair Breakeven in the image.

Use Remove/Replace Functionality

Add a repair line to the estimate and set the Labor Operation to Repair.
If a high amount of labor units and the cost of repair is excessive, Mitchell Cloud Estimating prompts you to switch to Remove/Replace labor operation.
Select Switch to R&R. The part will now be replaced instead of repaired. The screen moves to the R&R section.
An automated explanation appears in the Explanation text box. (i.e., Lower of R&R vs Repair of 4 Units).
Add any additional details to the window.
Click Add Line to commit the R&R line to the estimate.

Breakeven Analysis

On the parts tab of the Estimate Editor, the reselection of labor operations such as Repair to Remove/Replace (R&R) used to be manually done by the appraiser or reviewer. The decision to change a costly Repair operation into an R&R when the cost to repair exceeds the replacement cost has been automated with two features:

View the Percent of Replacement

When a part is chosen for Repair, the Repair Breakeven calculation automatically displays on the part details window when adding parts and labor (repair lines) to an estimate. The Repair Breakeven assists you with making a better choice between repair and replace by automatically comparing the percentage cost of the two operations. The Percent of Replacement calculation section of the part details window shows the cost of New percentage as well as the Recommendation operation of Keep as Repair or Switch to R&R.

When the repair operation and labor involved exceeds the replacement cost, Mitchell Cloud Estimating recommends switching the Replace operation with Remove & Replace (R&R). Below the available parts for selection and their details, the Percent of Replacement calculation shows the percentage cost exceeding the cost of a new part. The minimum threshold percentage displays above the percent of replacement and recommendation for the selected parts.

Note: The minimum threshold is set to 100% by default but on the Repair Breakeven sub-section of the Estimate Profile Calculations tab, it can be custom set anywhere from 50% to 100% as desired.

This Repair Breakeven is only available when the Repair operation is chosen. The two recommendations are:

Keep as Repair - The cost to repair is cheaper than the cost of replacing the part
Switch to R&R - The cost of repairing the part is either equal to or more expensive than replacing and its recommended to switch out the repair operation. Click the hyperlink to update the repair to an R&R operation for the estimate.