Cullumber 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 30% contribution margin ratio. The company's fixed costs are $15,649,200 (that is, $78,246 per service outlet). Sales mix is determined based upon total sales dollars. 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 eg. 0.25 and round final answers to 0 decimal places, e.g. 2,510.) Sales Dollars Needed Per Product Oil changes $ Brake repair $ eTextbook and Media The company has a desired net income of $54,004 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.) Sales Dollars Needed Per Service Outlet Oil changes $ Brake repair $
Cullumber 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 30% contribution margin ratio. The company's fixed costs are $15,649,200 (that is, $78,246 per service outlet). Sales mix is determined based upon total sales dollars. 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 eg. 0.25 and round final answers to 0 decimal places, e.g. 2,510.) Sales Dollars Needed Per Product Oil changes $ Brake repair $ eTextbook and Media The company has a desired net income of $54,004 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.) Sales Dollars Needed Per Service Outlet Oil changes $ Brake repair $
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...
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Transcribed Image Text:Cullumber 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 30% contribution margin ratio. The company's fixed costs are $15,649,200 (that is,
$78,246 per service outlet). Sales mix is determined based upon total sales dollars.
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 eg. 0.25 and round final answers to O decimal places, e.g. 2,510.)
Sales Dollars Needed Per Product
Oil changes
Brake repair
eTextbook and Media
The company has a desired net income of $54,004 per service outlet. What is the dollar amount of each type of service that must
be performed by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio
rounded to 2 decimal places e.g. 0.25 and round final answers to O decimal places, e.g. 2,510.)
Sales Dollars Needed Per Service Outlet
Oil changes
$
Brake repair
%24
%24
%24
%24
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