Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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%

image text in transcribed
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 $14,352,000 (that is, $71,760 per service outlet). Sales mix is determined based upon total sales dollars. 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 eg. 0.25 and round final answers to decimal places, eg 2,510.) Sales Dollars Needed Per Product Oil changes $ Brake repair e Textbook and Media The company has a desired net income of $47,840 per service outlet What is the dollar amount of each type of service that must be performed by each service outlet to meetits target net income per outlet? (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places eg. 0.25 and round final answers to decimal places, eg. 2,510.) Sales Dollars Needed Per Service Outlet Oil changes $ Brake repair $ e Textbook and Media

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

Forecasting Volatility In The Financial Markets

Authors: Stephen Satchell, John Knight

2nd Edition

0750655151, 9780750655156

More Books

Students also viewed these Accounting questions

Question

1. What are the three steps in the writing process?

Answered: 1 week ago

Question

How is social networking used in informal training?

Answered: 1 week ago

Question

What are some career development methods?

Answered: 1 week ago