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In: Accounting
Qwik Repairs has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service:...
Qwik Repairs 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 62% of its sales and provide a contribution margin ratio of 22%. Brake repair represents 38% of its sales and provides a 61% contribution margin ratio. The company's fixed costs are $15,050,000 (that is $75,250 per service outlet).
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 3 decimal places and round final answers to 0 decimal places. For Oil Changes & For Brake Repair - Please show calulations and answers
The company has a desired net income of 61,577 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 per outlet? (use weighted average contribution margin ratio rounded to 3 decimal places and round final answers to 0 decimal places. For oil changes & For Brake Repair - Please show calculations and answers.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil...
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 25%. Brake repair represents
20% of its sales and provides a 35% contribution margin ratio. The
company’s fixed costs are $15,660,000 (that is, $78,300 per service
outlet).
Calculate the dollar amount of each type of service that the
company must provide in order to break...
PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil...
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 70% of its sales and
provide a contribution margin ratio of 20%. Brake repair represents
30% of its sales and provides a 30% contribution margin ratio. The
company’s fixed costs are $15,552,600 (that is, $77,763 per service
outlet).
(a)
Calculate the dollar amount of each type of service that the
company must provide in order to...
PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil...
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 25%. Brake repair represents
40% of its sales and provides a 45% contribution margin ratio. The
company’s fixed costs are $15,590,000 (that is, $77,950 per service
outlet).
New attempt is in progress. Some of the new entries may impact
the last attempt grading.Your answer is...
PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil...
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)
Correct answer iconYour answer is correct.
Calculate the dollar amount of each type of service that the...
Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines...
Comprehensive Insurance Company has two product lines: health
insurance and auto insurance. The two product lines are served by
three operating departments which are necessary for providing the
two types of products: claims processing, administration, and
sales. These three operating departments are supported by two
departments: information technology and operations. The support
provided by information technology and operations to the other
departments is shown below.
Support Departments
Operating Departments
Information Technology
Operations
Claims
Processing
Administration
Sales
Information technology
—
20...
Comprehensive Insurance Company has two products lines: health insurance and auto insurance. The two products lines...
Comprehensive
Insurance Company has two products lines: health insurance and auto
insurance.
The two products lines are
served by three operating departments which are necessary for
providing the two types of
products: claims processing, administration, and sales.
These three operating
departments are supported by two departments: information
technology and operations. The
support provided by information technology and operations
to the other department is
shown below.
Support Departments
Operating Departments
IT
Operations
Claims Processing
Administration
Sales
IT
20%
20%
40%
20%...
Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines...
Comprehensive Insurance Company has two product lines: health
insurance and auto insurance. The two product lines are served by
three operating departments which are necessary for providing the
two types of products: claims processing, administration, and
sales. These three operating departments are supported by two
departments: information technology and operations. The support
provided by information technology and operations to the other
departments is shown below. Support Departments Operating
Departments Information Technology Operations Claims Processing
Administration Sales Information technology — 20...
Fast Auto Service provides oil and lube service to cars. The time required to service a...
Fast Auto Service provides oil and lube service to cars.
The time required to service a car is
normally distributed.
The mean amount of time to service a car is
30.0 minutes and a
The standard deviation in the amount of time to
service a car is 5.5 minutes.
a. Determine the probability that a random car can be serviced
in less than 20 minutes.
b. If it takes longer than 45 minutes to service a car, the
driver receives...
ServicePro provides two kinds of services. During the most recent accounting period, the two service lines...
ServicePro provides two kinds of services. During the most
recent accounting period, the two service lines produced the
following operating results:
Service 1
Service 2
Service revenue
$
135,000
$
55,000
Unit-level materials
$
(31,000
)
$
(13,000
)
Unit-level labor
$
(41,000
)
$
(25,000
)
Product-level selling &
administrative costs
$
(21,000
)
$
(14,500
)
Company wide facility-level
costs
$
(6,000
)
$
(6,000
)
Net income (loss)
$
36,000
$
(3,500
)
If the company stops...
The Grey Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of...
The Grey Manufacturing Company has two service departments:
Maintenance and Accounting. The Maintenance Department's costs of
$300,000 are allocated on the basis of machine hours. The
Accounting Department's costs of $120,000 are allocated on the
basis of the number of employees within a specific department. The
direct departmental costs for A and B are $300,000 and $500,000,
respectively.
Maintenance
Accounting
A
B
Machine hours
480
20
2,300
200
Number of employees
2
2
8
4
What are the total service...
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