Blossom Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service:...
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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 $14,352,000 (that is, $71,760 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 decimal places, eg. 2,510.) Sales Dollars Needed Per Product Oil changes $ Brake repair $ eTextbook and Media The company has a desired net income of $47,840 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 eg. 0.25 and round final answers to decimal places, eg. 2,510.) Sales Dollars Needed Per Service Outlet Oil changes $ Brake repair $
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