What is the dollar amount of each type of service

Assignment Help Accounting Basics

Reference no: EM131018598

E6-7 Rapid Auto 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 65% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 35% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $16,000,000 (that is, $80,000 per service outlet). Calculate the dollar amount of each type of service that the company must provide in order to break even. (Round computations for weighted-average contribution margin to 2 decimal places, e.g. 10.50, and final answers to 0 decimal places, e.g. 125.) Oil changes $ Break repairs $ The company has a desired net income of $60,000 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? (Round answers to 0 decimal places, e.g. 125.) Oil changes $ Break repairs $

Reference no: EM131018598

Questions Cloud

Discovery communication and collaboration tools : Discovery, communication and collaboration tools provide indirect support to decision making, however there are several other information technologies used to directly support decision making. Every DSS consists of at least data management, user inte..

Discuss the tax implications of each type of transaction : Although partnerships are flow-through entities, partner-partnership, partner-partner, and partner-external party transactions may have tax implications. Discuss the tax implications of each type of transaction.

Discuss the functions of management : Discuss the functions of management in respect to company's achievements....

How to set up the maintenance tasklist : How to set up the maintenance tasklist for planned maintenance strategy?

What is the dollar amount of each type of service : 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? (Round answers to 0 decimal places, e.g. 125.) Oil changes $ Break repairs $

What do you mean by the formal communication channels : What do you mean by the formal communication channels.

Explain things you want employees and associates to remember : Pick one of the 5 things you want employees and associates to remember about you as a manager. Why is this important to you and how will you reinforce this skill/ability so that it is distinctive?

How should devers respond to adkins''s request : Should Devers's knowledge of the compensation plan be a factor that influences her estimate?

What do you mean by autocratic supervision : What do you mean by autocratic supervision? Discuss in detail.

User Account

All Pages