Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the second part is what i need answered. Every person who has posted this answer on chegg has gotten it wrong PDQ Repairs has 200

image text in transcribed
image text in transcribed
the second part is what i need answered. Every person who has posted this answer on chegg has gotten it wrong
PDQ 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 60% of its sales and provide a contribution margin ratio of 15%. Brake repair represents 40% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,680,000 (that is, $78,400 per service outlet), (a) 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- Average Contribution Margin Ratio rounded to 2 decimal places e.8. 0.25 and round final answers to decimal places, eg. 2,510.) $ 37632000 Oil changes Brake repair 250BBDO (b) Your answer is incorrect. The company has a desired net income of $51,000 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 Morgin Ratio rounded to 2 decimal places eg. 0.25 and round final answers to o decimal places, eg. 2,510.) Oil changes $ Brake repair $

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

Step: 3

blur-text-image

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

Audit Planning A Risk Based Approach

Authors: K. H. Spencer Pickett

1st Edition

047169052X, 978-0471690528

More Books

Students also viewed these Accounting questions

Question

How is the impairment of AFS securities treated?

Answered: 1 week ago

Question

9. Describe the characteristics of power.

Answered: 1 week ago