Ayayai Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service:...
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Ayayai 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 80% of its sales and provide a contribution margin ratio of 15%. Brake repair represents 20% of its sales and provides a 65% contribution margin ratio. The company's fixed costs are $12.660.000 (or $93,000 per service outlet). (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. Oil changes Brake repair Ayayai 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 80% of its sales and provide a contribution margin ratio of 15%. Brake repair represents 20% of its sales and provides a 65% contribution margin ratio. The company's fixed costs are $12.660.000 (or $93,000 per service outlet). (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. Oil changes Brake repair
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Related Book For
Thermodynamics for Engineers
ISBN: ?978-1133112860
1st edition
Authors: Kenneth A. Kroos, Merle C. Potter
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