Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Repairs has 2 0 0 auto - maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil

Blossom 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 70% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,800,200(that is, $79,001 per service outlet). Sales mix is determined based upon total sales dollars.
Your answer is incorrect.
Calculate the dollar amount of each type of service that the company must provide in order to break even. (Use WeightedAverage Contribution Margin Ratio rounded to 2 decimal places e.g.0.25 and round final answers to 0 decimal places, e.g.2,510.)
Sales Dollars Needed Per Product
Oilchanges
$
Brake repair
eTextbook and Media
Your answer is partially correct.
The company has a desired net income of $55,003 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.0.25 and round final answers to 0 decimal places, a.g.2.520.
Sales Dollars Needed Per Service Outlet
Oil changes
Brake repair
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for business decision making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

978-1119191674, 047053477X, 111919167X, 978-0470534779

More Books

Students also viewed these Accounting questions