Sheffield Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil

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Sheffield 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 $12,450,000 (or $82.500 per service outlet).

Calculate the dollar amount of each type of service that the company must provide In order to break even.

Posted Date: Apr 07, 2022 02:06 AM

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Sheffield Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil

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The companys fixed costs are 12450000 or 82500 per service outlet Calculate the dollar amount of eac... View the full answer

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