Blue Spruce Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of...
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Blue Spruce 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 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $12,030,000 (or $61,500 per service outlet). Calculate the dollar amount of each type of service that the company must provide in order to break even. 14 Oil changes 9. Brake repair %24 %24 The company has a desired net income of $36,900 per service outlet. What is the dollar amount of each type of service that must be provided by each service outlet to meet its target net income? Oil changes Brake repair %24 %24 Blue Spruce 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 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $12,030,000 (or $61,500 per service outlet). Calculate the dollar amount of each type of service that the company must provide in order to break even. 14 Oil changes 9. Brake repair %24 %24 The company has a desired net income of $36,900 per service outlet. What is the dollar amount of each type of service that must be provided by each service outlet to meet its target net income? Oil changes Brake repair %24 %24
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Solution 1 Calculation of break even for each type of service Weighted Average con... View the full answer
Related Book For
Managerial Accounting An Integrative Approach
ISBN: 9780999500491
2nd Edition
Authors: C J Mcnair-Connoly, Kenneth Merchant
Posted Date:
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