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Figure out the break even cost in dollars for oil changes

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Reference no: EM132951318

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).

Problem 1: Figure out the break even cost in dollars for oil changes and break repair

Reference no: EM132951318

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