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Cheyenne 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
Cheyenne 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 80% of its sales and provide a contribution margin ratio of 15%. Brake repair represents 20% of its sales and provides a 65% contribution margin ratio. The company's fixed costs are $12,120,000 (or $60,600 per service outlet). (a) Your answer has been saved. See score details after the due date. Calculate the dollar amount of each type of service that the company must provide in order to break even. The company has a desired net income of $39,600 per service outlet. What is the dollar amount of each type of service that must be provided by each service outlet to meet its target net income? Oil changes \$ Brake repair $
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