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Rapid Auto has 215 auto-maintenance service outlets nationwide. It provides two main lines of service: oil changes and brake repair. Oil changes and related services
Rapid Auto has 215 auto-maintenance service outlets nationwide. It provides two main lines of service: oil changes and brake repair. Oil changes and related services represent 70% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 30% of its sales and provides a 60% contribution margin ratio. The companys fixed costs are $15,480,000 (that is, $72,000 per service outlet).
Rapid Auto has 215 auto-maintenance service outlets nationwide. It provides two main lines of service: oil changes and brake repair. Oil changes and related services represent 70% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 30% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $15,480,000 (that is, $72,000 per service outlet). (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. Oil changes $ Brake repairs $Step by Step Solution
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