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i will be sure to like the solution. Thanks! primarily two lines of service: oil changes and brake repair. Oil change-related services represent 70% of
i will be sure to like the solution. Thanks! primarily two lines of service: oil changes and brake repair. Oil change-related services represent 70% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,600,000 (that is, $78,000 per service outlet). Instructions a. Calculate the dollar amount of each type of service that the company must provide in order to break even. b. The company has a desired net income of $52,000 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? Compute break-even point in sales dollars for a company with more than one service
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