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Sandhill Auto has 210 auto-maintenance service outlets nationwide. It provides two main lines of service: oil changes and brake repair. Oil changes and related services
Sandhill Auto has 210 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 $20,800,000 (that is, $96,000 per service outlet). Calculate the dollar amount of each type of service that the company must provide in order to break even. Oil changes 45500000 Brake repairs $ 19500000 eTextbook and Media The company has a desired operating income of $72,000 per service outlet. Calculate the dollar amount of each type of service that must be provided by each service outlet to meet the company's target operating income per outlet. Oil changes Brake repairs Required sales
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