Answered step by step
Verified Expert Solution
Link Copied!

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. Oll change-related services represent 80%

image text in transcribed
image text in transcribed
Sunland Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oll 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 fixed costs are $15,790,900 (that is, $78,955 per service outiet). Sales mix is determined based upon total sales dollars. Your answer is correct. Calculate the dollar amount of each type of service that the company must provide in order to break even. (Use Weighted-Averuge Contribution Margin Ratio rounded to 2 decimal places eg. 0.25 and round final answers to 0 decimal places, eg. 2,510.) The company has a desired net income of $54,995 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 es. 0.25 and round final answers to 0 decimal places, es. 2,510.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Web Applications A Complete Guide

Authors: Gerardus Blokdyk

1st Edition

1038803721, 978-1038803726

More Books

Students also viewed these Accounting questions

Question

Multiply the following polynomials, as indicated. (5x + y) (x - 3y)

Answered: 1 week ago