Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer B for me Question 12 of 34 Current Attempt in Progress Quantity of Oil Changes James is considering opening a Fast 'n Clean

please answer B for me Question 12 of 34 Current Attempt in Progress Quantity of Oil Changes James 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 $9,300, Depreciation on equipment $7,100, Wages $16,916, 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: 4,100 (a) 6,100 9,100 12,100
image text in transcribed
image text in transcribed
James is considering opening a Fast n Clean Car Service Center. He estimates that the following costs will be incurred during his first vear of operations: Rent $9,300, Depreciation on equipment $7,100, Wages $16,916, Motor oil $2 per quart. He estimates that each oll 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 51.10 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 James anticipates that he can provide the oil change service with a fitter at $25,92 each. Determine the break-even sales quantity of oil changes and sales dollars. (Round Contribution margin ratio to 2 decimal places, e.g 57.20\% Round final answers to 0 decimal places, eg. 5720) Break-even oil changes in units Break-even sales in dollars eTextbook and Media Attempts: 0 of 1 used (c) The parts of this question must be completed in order. This part will be available when you complete the part above

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

Residential Energy Auditing And Improvement

Authors: Stan Harbuck, Donna Harbuck

1st Edition

8770229252, 978-8770229258

More Books

Students also viewed these Accounting questions

Question

How is the NDAA used to shape defense policies indirectly?

Answered: 1 week ago