Business, 13.12.2019 05:31, madiness05
Pdq repairs has 200 auto-maintenance service outlets nationwide. it performsprimarily two lines of service: oil changes and brake repair. oil change–related servicesrepresent 70% of its sales and provide a contribution margin ratio of 20%. brake repairrepresents 30% of its sales and provides a 40% contribution margin ratio. the company’sfi xed costs are $15,600,000 (that is, $78,000 per service outlet).instructions(a) calculate the dollar amount of each type of service that the company must provide inorder to break even.(b) the company has a desired net income of $52,000 per service outlet. what is the dollaramount of each type of service that must be performed by each service outlet to meetits target net income per outlet?
Answers: 1
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