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.

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ekkarill92 answered 1 year ago

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