Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i would need help in part c i appreciate of you show me the part a and b answers at least to verify with my

i would need help in part c
i appreciate of you show me the part a and b answers at least to verify with my homework image text in transcribed
Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily fwo lines of service: oil changes and brake repair. Oil change-related services represent 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $15,000,000 (that is, $75,000 per service outlet). 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 $45,000 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 per outlet? c. If the company changes its sales mix to 60% for oil change service and 40% for break repair service, what is the break even sales for the company

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

Computer Auditing Security And Internal Control Manual

Authors: Javier F. Kuong

1st Edition

0131629670, 978-0131629677

More Books

Students also viewed these Accounting questions

Question

2. Describe how technology can impact intercultural interaction.

Answered: 1 week ago

Question

7. Define cultural space.

Answered: 1 week ago