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E6.33 (LO 2, 3,5) Service Rapid Auto has 200 auto-maintenance service outlets nationwide. It provides two main lines of service: oil changes and brake repair.

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E6.33 (LO 2, 3,5) Service Rapid Auto has 200 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 $16 million (that is, $80,000 per service outlet). 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 operating income of $60,000 per service outlet. Calculate the dollar amount of each type of service that must be provided by each service outlet to meet the company's target operating income per outlet

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