Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cullumber Auto has 185 auto-maintenance service outlets nationwide. It provides two main lines of service: oil changes and brake repair. Oil changes and related

image text in transcribedimage text in transcribed

Cullumber Auto has 185 auto-maintenance service outlets nationwide. It provides two main lines of service: oil changes and brake repair. Oil changes and 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 60% contribution margin ratio. The company's fixed costs are $18,000,000 (that is, $84,800 per service outlet). (a) Your answer is correct. Calculate the dollar amount of each type of service that the company must provide in order to break even. Oil changes $ Brake repairs 39375000 16875000

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

Horngrens Accounting

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

10th edition

133117413, 978-0133129519, 133129519, 978-0133129557, 133129551, 978-0133117561, 133117561, 978-0133117417

More Books

Students also viewed these Accounting questions