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Steven is considering opening a Fast'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations:

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Steven is considering opening a Fast'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200. Depreciation on equipment $7,000, Wages $16,842, Motor oil $2 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of $110 per oil change since he will operate the business as a franchise In addition, utility costs are expected vary with the quantity of oil changes as follows: Steven anticipates that he can provide the oli change service with a filter at $36.52 each. Using the high-low method, determine variable costs per unit and total fuxed costs. (Round vuriable cost to 2 decimal ploces eg. 5275.) Variable cost perunit Fixed cost Determine the break-even sales quantity of oil changes and sales dollars (Round Contribution margin retio to 2 decimal ploces, eg. 57.20% Round final answers to 0 decimal ploces e8. 5720 ) Break-even oll changes in units Break-even sales in dollars 5

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