Ivanhoe Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil...
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Ivanhoe 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 20%. Brake repair represents 20% of its sales and provides a 45% contribution margin ratio. The company's fixed costs are $15,580,000 (that is, $77,900 per service outlet). Sales mix is determined based upon total sales dollars. (a) 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 eg. 0.25 and round final answers to 0 decimal places, eg. 2,510.) Sales Dollars Needed Per Product Oil changes $ Brake repair $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Cei The parts of this question must be completed in order. This part will be available when you complete the part above Ivanhoe 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 20%. Brake repair represents 20% of its sales and provides a 45% contribution margin ratio. The company's fixed costs are $15,580,000 (that is, $77,900 per service outlet). Sales mix is determined based upon total sales dollars. (a) 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 eg. 0.25 and round final answers to 0 decimal places, eg. 2,510.) Sales Dollars Needed Per Product Oil changes $ Brake repair $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Cei The parts of this question must be completed in order. This part will be available when you complete the part above
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