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Can you please show the work and where you gor the answers from? Paul is considering opening a Fast 'n Clean Car Service Center. He
Can you please show the work and where you gor the answers from?
Paul is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200. Depreciation on equipment $7,000, Wages $15,710, Motor oil $2 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast ' n Clean Corporation a franchise fee of \$1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil changes as follows: Paul anticipates that he can provide the oil change service with a filter at $30.97 each. Using the high-low method, determine variable costs per unit and total fixed costs. (Round variable cost to 2 decimal places, e. . 52.75.) Variable cost perunit Fixed cost Determine the break-even sales quantity of oil changes and sales dollars, (Round Contribution margin ratio to 2 decimal ploces, es. 57.20\% Round final onswers to 0 decimal ploces. e. 5. 5720) Break-even oil changes in units Break-even sales in dollars eTextbookand Media Without regard to your answers in parts (a) and (b), determine the oil changes required to earn a net income of $33,000, assuming fixed costs are $45,000 and the contribution margin per unit is $16. Oilchanges required Step by Step Solution
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