Question: Cullumber Repairs has 2 0 0 auto - maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil
Cullumber Repairs has automaintenance service outlets nationwide. It performs primarily two lines of service: oil changes and
brake repair. Oil changerelated services represent of its sales and provide a contribution margin ratio of Brake repair
represents of its sales and provides a contribution margin ratio. The company's fixed costs are $that is
$ per service outlet Sales mix is determined based upon total sales dollars.
a
Your answer is correct.
Calculate the dollar amount of each type of service that the company must provide in order to break even. Use WeightedAverage
Contribution Margin Ratio rounded to decimal places eg and round final answers to decimal places, eg
Sales Dollars Needed Per Product
Oil changes
Brake repair $
b
The company has a desired net income of $ per service outlet. What is the dollar amount of each type of service that
be performed by each service outlet to meet its target net income per outlet? Use WeightedAverage Contribution Margin Ratio
rounded to decimal places e and round final answers to decimal places, eg
Sales Dollars Needed Per Service Outlet
Oil changes
Brake repair
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