Question
Whispering Winds Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change-related
Whispering Winds Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change-related services represent 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $12,480,000 (or $84,000 per service outlet). (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. Oil changes %24 Brake repair %24
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Microeconomics
Authors: Dean Karlan, Jonathan Morduch
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978-0077332587, 007733258X, 978-0077332648, 77332644, 978-1259163531
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