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 $12,480,000(that is,
$62,400 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 Weighted-
Average 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
Oil changes $
Brake repair $
eTextbook and Media
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_2

Step: 3

blur-text-image_3

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

Fundamental Managerial Accounting Concepts

Authors: Edmonds, Tsay, olds

6th Edition

71220720, 78110890, 9780071220729, 978-0078110894

More Books

Students also viewed these Accounting questions

Question

What sequencing rules do you think the tower controllers use?

Answered: 1 week ago

Question

=+ Does it speak to you in a personal way? Does it solve a problem?

Answered: 1 week ago

Question

=+Part 4 Write one unifying slogan that could work here and abroad.

Answered: 1 week ago