Question: please solve and explain part A. Sunland Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two fines of service:oil changes and brake repair.
Sunland Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two fines 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 35% contribution margin ratio. The company's fixed costs are $15.790,900 (that is, $78,955 per service outlet). Sales mix is determined based upon total sales dollars. (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. (Use Welghted-Average Contribution Margin Ratio rounded to 2 decimal places es. 0.25 and round final answers to 0 decimol ploces, es. 2,510)
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