Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sunland Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent
Sunland Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 80% of its sales and provide a contribution margin ratio of 15%. Brake repair represents 20% of its sales and provides a 35% contribution margin ratio. The company's foxed costs are $15,720,600 (that is, $78,603 per service outlet). Sales mix is determined based upon total sales dollars. 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 2 decimal places eg 0.25 and round final answers to O decimal places, e.g. 2,510) Sales Dollars Needed Per Product Oil changes $ Brake repair eTextbook and Media 43 The company has a desired net income of $53,998 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places eg. 0.25 and round final answers to O decimal places, eg. 2.510.) Sales Dollars Needed Per Service Outlet Oil changes $ Brake repair
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started