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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
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
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