Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: all changes and brake repair. Oil change-related services represent 80%

image text in transcribed
image text in transcribed
PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: all 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 brovides a 35% contribution margin ratio. The company's fixed costs are $15,720,600 (that is, $78,603 per service outlet). 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 Marin Ratio rounded to 2 decimal places 0.25 and round final answers to decimal places, cu 2.510) Oil changes 3 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

Ethical Obligations And Decision Making In Accounting Text And Cases

Authors: Steven Mintz

6th Edition

1264135947, 9781264135943

More Books

Students also viewed these Accounting questions

Question

Describe the shortcomings in the official poverty statistics.

Answered: 1 week ago

Question

Define the terms: (a) Group; (b) Parent company; and (c) Subsidiary

Answered: 1 week ago

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago