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Rapid Auto has 230 auto-maintenance service outlets nationwide. It provides two main lines of service: oil changes and brake repair. Oil changes and related
Rapid Auto has 230 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 $20,240,000 (that is, $88,000 per service outlet). (a) * Your answer is incorrect. Calculate the dollar amount of each type of service that the company must provide in order to break even. Oil changes Brake repairs +A $ 903571423 +A $ 210833333
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