Flounder Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service:...
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Flounder 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 $12,150,000 (or $67,500 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 %24 Brake repair %24 Flounder 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 $12,150,000 (or $67,500 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 %24 Brake repair %24
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Solution Combined breakeven point in Dollars Fixed cost Weighted contribution m... View the full answer
Related Book For
Thermodynamics for Engineers
ISBN: ?978-1133112860
1st edition
Authors: Kenneth A. Kroos, Merle C. Potter
Posted Date:
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