Blossom 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 70% of its sales and provide a contribution margin ratio of 20% Brake repair represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $12,480,000 (that is $62,400 per service outlet). Sales mix is determined based upon total sales dollars. (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 2 decimal places a 0.25 and round final answers to O decimal places, e 2.510) Sales Dollars Needed Per Product Oil changes Brake repair

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6EB: Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit...
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Blossom 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 70% of its sales and provide a contribution margin ratio of 20% Brake repair
represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $12,480,000 (that is
$62,400 per service outlet). Sales mix is determined based upon total sales dollars.
(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 2 decimal places ag 0.25 and round final answers to O decimal places, eg 2.510)
Sales Dollars Needed Per Product
Oil changes
Brake repair
Transcribed Image Text:Blossom 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 70% of its sales and provide a contribution margin ratio of 20% Brake repair represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $12,480,000 (that is $62,400 per service outlet). Sales mix is determined based upon total sales dollars. (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 2 decimal places ag 0.25 and round final answers to O decimal places, eg 2.510) Sales Dollars Needed Per Product Oil changes Brake repair
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