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Determine the dollar amount for each type of service

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Question - 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 20%. Brake repair represents 20% of its sales and provides a 45% contribution margin ratio. The company's fixed costs are $15,770,000 (that is, $78,850 per service outlet). Determine the dollar amount for each type of service the company provides in order to break even.

Reference no: EM133042758

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