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Matthew is considering opening a Fast ' n Clean Car Service Center. He estimates that the following costs will be incurred during his first year
Matthew 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 $15,256. Motor oll $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 oll 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: Matthew anticipates that he can provide the oil change service with a fiter at $44.42 each. (a) Your answer has been saved, See score details atter the due date. Using the high-low method, determine variable costs per unit and totai fwed costs. (Round variable cost to 2 decimal places, e.8. 52.75.) Varlable cost perunit Fixed cost Attempts: 1 of 1 used (b) Determine the break-even sales quantity of oll changes and sales dollars, (Round Contribution margin ratio to 2 decimal places, e.3. 57.20%. Round final answers to o decimal places, es. 5720) Break-even ollchangesinunits Break-evensales in dothars s
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