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Question 2 FBE Thunder is an oil change service drive-through that charges each customer $24.00 for an oil and filter change service. FBE Thunder
Question 2 FBE Thunder is an oil change service drive-through that charges each customer $24.00 for an oil and filter change service. FBE Thunder has found that it costs its business $16.00 per oil and filter change. Monthly fixed costs are $32,000; current sales are 8,000 services. Required (20 points in total): a. b. c. Compute the breakeven sales in units (4 points). Compute FBE Thunder's margin of safety in units and sales dollars (4 points). d. Compute FBE Thunder's margin of safety as a percentage (4 points). Compute FBE Thunder's operating leverage factor (4 points). e. Compute FBE Thunder's % of operating income decline if sales fall by 18% (4 points).
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