Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primanly two lines of service: oil changes and brake repair, Oil change-related services represent 80%

image text in transcribed
PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primanly 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 25%. Brake repair represents 20% of its sales and provides a 35% contribution margin rabo. The company's fixed costs are $15,611,400 (that is, $78,057 per service outlet). 0.25 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 and round final answers to decimal places, .g. 2,510) Oil changes Brake repairs LINK TO TEXT o The company has a desired net income of 150,976 per service outlet What is the l (Use Weighted Average Contribution Margin Hati rounded to 2 decimal places t of each type of service that must be performed by each service outlet te meets target net income per outlet? 0.25 and round final answers to decimal places 10.) Olchange De repair

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

Sound Investing, Chapter - Classification Deceit

Authors: Kate Mooney

2nd Edition

0071719385, 9780071719384

More Books

Students also viewed these Accounting questions

Question

Under what circumstances is polygraph testing of employees legal?

Answered: 1 week ago