Wildhorse Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changesand brake repair. Oil change-related services represent 70% of its sales and provide a contribution margin ratio of 20%. Brakerepair represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $13,416,000 (thatis, $67,080 per service outlet). Sales mix is determined based upon total sales dollars.(a)Your answer is correct.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 e.g. 0.25 and round final answers to 0 decimalplaces, e.g. 2,510.)Sales Dollars Needed Per ProductOil changesBrake repair $3612000015480000 The company has a desired net income of $44,720 per service outlet. What is the dollar amount of each type of service thatmust be performed by each service outlet to meet its target net income per outlet? (Use Weighted-Average ContributionMargin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to O decimal places, e.g. 2,510.)Sales Dollars Needed Per Service OutletOil changesBrake repair$LA

When two or more products are produced then in order to calculate the break even point the use of…

Wildhorse 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 $13,416,000 (that is, $67,080 per service outlet). Sales mix is determined based upon total sales dollars.

Wildhorse 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 $13,416,000 (that is, $67,080 per service outlet). Sales mix is determined based upon total sales dollars.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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