Kevin is considering opening a Fast n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $17,592, Motor oil $2 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast n Clean Corporation a franchise fee of $1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil changes as follows:

Kevin is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $17,592, Motor oil $2 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of $1.10 per oil change since he will operate the business as a franchise. In addition, utility costs are expected vary with the quantity of oil changes as follows: Quantity of Oil Changes 6,200 8,200 Utility Costs $14,776 $18,300 $20,600 $23,600 $26,000 11,200 14,200 18,400 Kevin anticipates that he can provide the oil change service with a filter at $41.81 each. Using the high-low method, determine variable costs per unit and total fixed costs. (Round variable cost to 2 decimal places, eg. 5275.) Variable cost per unit Fixed cost $ eTextbook and Media Determine the break-even sales quantity of oil changes and sales dollars. (Round Contribution margin ratio to 2 decimal places, eg, 57.20%. Round final answers to decimal places, eg. 5720) Break-even oil changes in units Break-even sales in dollars e Textbook and Media Without regard to your answers in parts (a) and (b), determine the oil changes required to earn a net income of $42,000, assuming fixed costs are $54,000 and the contribution margin per unit is $24. Oil changes required e Textbook and Media