Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

image text in transcribed

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). Calculate the dollar amount of each type of service that the company must provide in order to break even. Oil changes $ 31200000 Brake repair $ 10400000 The company has a desired net income of $50,400 per service outlet. What is the dollar amount of each type of service that must be provided by each service outlet to meet its target net income? 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

Principles Of Auditing

Authors: Vasuhi M

1st Edition

6206150747, 978-6206150749

More Books

Students also viewed these Accounting questions