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Flounder Service has over 2 0 0 auto - maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair.

Flounder Service has over 200 auto-maintenance service outlets nationwide. It provides 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 15%. Brake repair represents 20% of its sales and provides a 65% contribution margin ratio. The company's fixed costs are $12,150,000(or $60,750 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 repair
$
Attempts: 1 of 2 used
(b)
x Your answer is incorrect.
The company has a desired net income of $40,500 per service outlet. What is the dollar amount of each type of service that must be provided by each service outlet to meet its target net income?
Oil changes
$
Brake repair
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