Exercise 19-07 (Part Level Submission) PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 60% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 40% of its sales and provides a 45% contribution margin ratio. The company's fixed costs are $15,801,000 (that is, $79,005 per service outlet). (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to O decimal places, e.g. 2,510.) Oil changes $ Brake repair $ Click if you would like to show Work for this question: Open Show Work Exercise 19-16 a1, b An Investment banker is analyzing two companles that specialize in the production and sale of candled yams. Traditional Yams uses a labor-Intensive approach, and Auto-Yams uses a mechanized system. CVP Income statements for the two companies are shown below Auto-Yams Sales Variable costs Contribution margin Fixed costs Net incoma Traditional Yams $405,000 323,000 82.000 32.000 $50,000 $405,000 160,000 245,000 195,000 $50,000 The investment banker is interested in acquiring one of these companies. However, she is concerned about the impact that each company's cost structure might have on its profitability. Calculate each company's degree of operating leverege. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Traditional Yams Auto-Yams Determine the effect on each company's net income if sales decrease by 20% and if sales increase by 5%. Do not prepare income statements. (Round answers to 2 decimal places, e.g. 10.52. If % change is negative, enter amount with either a negative sign or parenthesis, e.g.-10.52 or (10.52).) % Change in Net Income Sales decrease by 20% Traditional Yems Auto-Yams 06 Sales increase by 5% Traditional Yams Auto-Yams