The cancellation chargeback is calculated by the following method:
(Pro-rata % of Total Selling Dealer Profit) + (Pro-rata % of the administration fee) to a maximum of the total Selling Dealer Profit.
This calculation ensures that a cancellation will never result in “out of pocket” expenses for a Selling Dealer. “Out of pocket” expense refers to any amount over and above the Total Dealer Profit. (Dealer Mark-up (total customer cost – total dealer cost) – Administration Fee)