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Pharoah 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%
Pharoah 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 les sales and provide a contribution margin ratio of 20%. Brake repatr represents 20% of its sales and provides a 35% contribution margin ratio. The company's fixed costs are $15,729,700 (that is, $78,549 per service outlet). Seles mix is determined based upon total sales dollars. (a) Your Answer Correct Answer Your answer is correct. 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 decimal places, eg. 2,510.) Sales Dollars Needed Per Product Oll changes 54712000 Brake repair $ 13679000 Textbook and Media Assistance Used Solution Attempts: 4 of 4 used (b) * Your answer is incorrect. The company has a desired net Income of $53,003 per service outlet What Is the dollar amount of each type of service that must be performed by each service outlet to meet its target net Income per outlet? (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places eg. 0.25 and round final answers to decimal places, eg. 2,510.) Sales Dollars Needed Per Service Outlet Oil changes $ 54896462 Brake repair $ 13724115
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