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E19-7 PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs Compu primarily two lines of service: oil changes and brake repair. Oil change-related services

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E19-7 PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs Compu primarily two lines of service: oil changes and brake repair. Oil change-related services point ar represent 70% of its sales and provide a contribution margin ratio of 20%. Brake repair dollars represents 30% of its sales and provides a 40% contribution margin ratio. The company's than on fixed costs are $15,600,000 (that is, $78,000 per service outlet). (LO 2), AF Instructions (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. (b) The company has a desired net income of $52,000 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? E19-9 Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Pairs of Pairs of Range- Shoes Gloves Finder Unit sales price $100 $30 $260 Unit variable costs 60 10 200 Unit contribution margin $ 40 $20 $ 60 Sales mix 35% 55% 10% Fixed costs are $620,000. Instructions (a) Compute the break-even point in units for the company. (b) Determine the number of units to be sold at the break-even point for each product line. (c) Verify that the mix of sales units determined in (b) will generate a zero net income

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