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Crane Repairs has 200 auto-maintenance service outlets nationwide, It performs primarily two lines of service: oil changes and brake repair. Ol change-related services represent 80%
Crane Repairs has 200 auto-maintenance service outlets nationwide, It performs primarily two lines of service: oil changes and brake repair. Ol change-related services represent 80% of its sales and provide a contribution margin ratio of 15%. Brake repalr represents 20% of its sales and provides a 45% contribution margin ratio. The companys fixed costs are $15,569,400 (that is. $77,847 per service outlet). Sales mix is determined based upon total sales dollars: (a) 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.8. 2,510.)
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