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Exercise 20-7 (Part Level Submission) PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair.
Exercise 20-7 (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 80 % of its sales and provide a contribution margin ratio of 25 %. Brake repair represents 20 % of its sales and provides a 35 % contribution margin ratio. The company's fixed costs are $15,660,000 (that is, 78,300 per service outlet)
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