Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help with part B please Pronghorn Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake

help with part B please
image text in transcribed
image text in transcribed
Pronghorn 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 compary's fixed costs are $12,360,000 (or $61,800 per service outlet). (a) Your answer has been saved. See score details after the due date. Calculate the dollar amount of each type of service that the company must provide in order to break even. The company has a desired net income of $46,800 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? Oilchanges Brake repair

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Performance Auditing

Authors: Shrivastava A.

1st Edition

8131316254, 978-8131316252

More Books

Students also viewed these Accounting questions

Question

Can workers be trained in ethics? How? Defend your answer.

Answered: 1 week ago