Pharoah Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil...
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Pharoah 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 25%. Brake repair represents 20% of its sales and provides a 35% contribution margin ratio. The company's fixed costs are $15,660,000 (that is, $78,300 per service outlet). Sales mix is determined based upon total sales dollars. Calculate the dollar amount ofeach 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. O.25 and round final answers to O decimal places, e.g. 2,510.) Sales Dollars Needed Per Product Oil changes $ Brake repair 2$ eTextbook and Media The company has a desired net income of $50,004 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. O.25 and round final answers to O decimal places, e.g. 2,510.) Sales Dollars Needed Per Service Outlet Oil changes 2$ Brake repair Pharoah 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 25%. Brake repair represents 20% of its sales and provides a 35% contribution margin ratio. The company's fixed costs are $15,660,000 (that is, $78,300 per service outlet). Sales mix is determined based upon total sales dollars. Calculate the dollar amount ofeach 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. O.25 and round final answers to O decimal places, e.g. 2,510.) Sales Dollars Needed Per Product Oil changes $ Brake repair 2$ eTextbook and Media The company has a desired net income of $50,004 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. O.25 and round final answers to O decimal places, e.g. 2,510.) Sales Dollars Needed Per Service Outlet Oil changes 2$ Brake repair
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Related Book For
Thermodynamics for Engineers
ISBN: ?978-1133112860
1st edition
Authors: Kenneth A. Kroos, Merle C. Potter
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