Question
Qwik Repairs has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil changerelated services represent
Qwik Repairs has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil changerelated services represent 63% of its sales and provide a contribution margin ratio of 22%. Brake repair represents 37% of its sales and provides a 61% contribution margin ratio. The companys fixed costs are $16,526,000 (that is, $82,630 per service outlet). 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 3 decimal places e.g. 0.255 and round final answers to 0 decimal places, e.g. 2,510.) Oil changes $ Entry field with incorrect answer now contains modified data Brake repair $ Entry field with incorrect answer Incorrect answer. Your answer is incorrect. Try again. The company has a desired net income of $60,387 per service outlet. What is the dollar amount of each type of service that must be provided by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio rounded to 3 decimal places e.g. 0.255 and round final answers to 0 decimal places, e.g. 2,510.) Oil changes $ Entry field with incorrect answer Brake repair $
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