Question: 4, Henning Co. estimates that variable costs will be 60% of sales and fixed costs will total $2.040,000. The selling price of the product is
4, Henning Co. estimates that variable costs will be 60% of sales and fixed costs will total $2.040,000. The selling price of the product is $10, and 600,000 units will be sold. Instructions (a) Compute the break-even point in units and dollars. (b) Compute the margin of safety in dollars. (c) Compute net income. 5. Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change-related services represent 70% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 30% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $12,000,000 (that is, $60,000 per service outlet). Instructions (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. (b) The company has a desired net income of $40,000 per service outlet. What is the dollan amount of each type of service that must be provided by each service outlet to meet its target net income per outlet
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