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 change-related services represent 80% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 20% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,580,800 (that is, $77,904 per service outlet) (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 Weighted Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to decimal places, e.g. 2,510.) Oil changes 51936000 Brake repair 12984000 Click If you would like to Show Work for this question: Open Show Work udy SHOW SOLUTION SHOW ANSWER LINK TO TEXT VIDEO SIMILAR EXERCISE Attempts: 1 of 15 used (b) The company has a desired net income of $51,000 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet is target net income per outlet? (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to decimal places, ... 2,510.) Ol changes 5 Brake repair
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