Whispering Winds Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Whispering Winds 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 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $12,480,000 (or $84,000 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 Whispering Winds 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 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $12,480,000 (or $84,000 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
Expert Answer:
Answer rating: 100% (QA)
Ang wer Sales Conterbution maggin Conterbrution magim ollcha... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Snow Company sells a product with a contribution margin ratio of 65%. Fixed costs are $ 4,000 per month. What amount of sales (in dollars) must Snow Company have to earn an operating income of $...
-
Summer Company sells a product with a contribution margin ratio of 60%. Fixed costs are $650 per month. What amount of sales (in dollars) must Summer Company have to earn an operating income of...
-
Ocean Company sells a product with a contribution margin ratio of 80%. Fixed costs are $2,800 per month. What amount of sales (in dollars) must Ocean Company have to break even? If each unit sells...
-
How would you help a person understand domestic violence if she was from a culture that considered male dominance and female submission as part of their beliefs?
-
The financial statements of Big City News, Inc., include the following items: Requirements 1. Using Exhibit 13-8 as a model, compute the following ratios for 2014 and 2013: a. Current ratio b. Quick...
-
The data points in a sample of size 9 are 34, 51, 40, 38, 47, 50, 52, 44, 37. a. If you can take the deviations of these data from any number you select, and you want to minimize the sum of the...
-
Using the information for the Melville Corporation above, calculate the cash flow from operating activities. Use the following information regarding the Melville Corporation Accounts payable...
-
In Exercise 6 of Chapter 2, data on numbers of publications were given for an SRS of 50 faculty members. Not all departments were represented, however, in the SRS. The SRS contained several faculty...
-
Recall that we used the conjugate gamma prior for , the arrival rate in busses per minute. Suppose our prior belief about this rate is that it should have mean 1/20 arrivals per minute with standard...
-
On December 31, Y3, Aylmer Industries Inc. purchased 85% of the outstanding shares of Belmont Inc. The purchase price is indicated on the excel file. The entry has been recorded on the books of...
-
The Carseats data that accompanies library(ISLR2) contains sales of child car seats at 400 different stores. To access the data, load the 'ISLR2' package and call the `Carseats` data as illustrated...
-
Grace bought 500 shares of WeedBHere at $35 per share. Over the next two years, she received $5 per share in dividend payments. At the end of the two years, Grace sold these shares for $50 each. What...
-
Imagine that you are Leila Velez, the CEO of Beleza Natural, and you have to decide how to grow the company to reach your goal. What would you do ? If you decided to make Beleza\'s products available...
-
Recommend and justify the practical steps and initiatives the CEO of McDonalds can undertake to ensure all staff are involved in the process of their strategic plan and corporate objectives.
-
a) You and a friend are on opposite sides of a river, and you want to measure the width of the river using string and a tape measure. Unfortunately, there are obstacles in the way, so you aren't able...
-
An organization leader that has influenced me was an old supervisor of mines, Diane. She always had a great attitude towards the clients and the staff. Diane knew how to work well with everyone, even...
-
Find the slope intercept and standard deviation for this data Mean temperature (C)hatching success...
-
KD Insurance Company specializes in term life insurance contracts. Cash collection experience shows that 20 percent of billed premiums are collected in the month before they are due, 60 percent are...
-
At Zooeys elementary school, children are not allowed to trade lunches or components of their lunches with other students. Lunchroom monitors watch closely and strictly enforce this policy. Help...
-
In the sequential game shown in Figure 9P-4, what choice should Player A make now to achieve the highest payoff at the end of the game? Result Strategy 3B:8 A: 5 Strategy 1 Player B B: 6 Strategy 4A...
-
Your friend Edgar has just finished his first year working full-time, and comes home beaming with an envelope from the IRS, which has sent him a check for $650 after he sent in his tax forms. Explain...
-
Eden Development Company has two competing investments. Proposal A and Proposal B. Proposals A and B have an initial investment of $175,000. The net cash flows estimated for the two investments are...
-
Pyramid Construction Company is planning an investment of \($174,000\) for a bulldozer. The bulldozer is expected to operate for 1,400 hours per year for five years. Customers will be charged \($80\)...
-
Financial statement data is utilized by a variety of user-groups to include a companys board of directors, bondholders, corporate employees and executives, customers, investment advisors, labor...
Study smarter with the SolutionInn App