Maurice Tutor

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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 11 Aug 2017 My Price 7.00

Qwik Repairs

Qwik Repairs has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change%u2013related services represent 63% of its sales and provide a contribution margin ratio of 19%. Brake repair represents 37% of its sales and provides a 61% contribution margin ratio. The company%u2019s fixed costs are $16,150,000 (that is, $80,750 per service outlet).

(a) 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 e.g. 0.255 and round final answers to 0 decimal places, e.g. 2,510.)

 

     
     


(b) The company has a desired net income of $60,043 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 e.g. 0.255 and round final answers to 0 decimal places, e.g. 2,510.)

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 06:08 PM My Price 7.00

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