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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 80%
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 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 $15,792,800 (that is $78,964 per service outlet). (a) x Your answer is incorrect. 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 decimal places, eg. 2.510.) Oil changes 332480 Brake repair $ 83120
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