Question: Exercise 6-7 (Video) (Part Level Submission) PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake

Exercise 6-7 (Video) (Part Level Submission)

PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil changerelated services represent 80% of its sales and provide a contribution margin ratio of 15%. Brake repair represents 20% of its sales and provides a 35% contribution margin ratio. The companys fixed costs are $15,792,800 (that is, $78,964 per service outlet).

(a)

Calculate the dollar amount of each type of service that the company must provide in order to break even. (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.)
Oil changes $

Brake repair $

Click if you would like to Show Work for this question:

Open Show Work

LINK TO TEXT

Attempts: 0 of 15 used

SAVE FOR LATER

SUBMIT ANSWER

(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!