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Hi - Can someone please answer these two problems for me. Thank you! Exercise 6-7 PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs
Hi - Can someone please answer these two problems for me. Thank you!
Exercise 6-7 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 15%. Brake repair represents 20% of its sales and provides a 35% contribution margin ratio. The company's fixed costs are $15,790,000 (that is, $78,950 per service outlet). 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 0 decimal places, e.g. 2,510.) $ Oil changes $ Brake repair LINK TO TEXT The company has a desired net income of $55,000 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.) $ Oil changes $ Brake repair Exercise 6-10 Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below. iPad Division iPod Division Total Sales Variable costs $748,800 546,624 $421,200 231,660 $1,170,000 778,284 Contribution margin $202,176 $189,540 391,716 Fixed costs 135,259 Net income $256,457 Determine sales mix percentage and contribution margin ratio for each division. (Round answers to 0 decimal places, e.g. 15%.) Sales Mix Percentage iPad division iPod division % % Contribution Margin Ratio iPad division iPod division % % LINK TO TEXT Calculate the company's weighted-average contribution margin ratio. (Round computations and final answer to 2 decimal places, e.g. 15.26%.) Weighted-average contribution margin ratio % LINK TO TEXT Calculate the company's break-even point in dollars. (Round computations to 2 decimal places and final answer to 0 decimal places, e.g. 1,526.) $ Break-even point LINK TO TEXT Determine the sales level in dollars for each division at the break-even point. (Round computations to 2 decimal places and final answers to 0 decimal places, e.g. 1,526.) Break-even point iPad division iPod division $ $Step by Step Solution
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