Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. need a help in this exercise 3. bill braddock i

need a help in this exercise 3. Bill Braddock is considering opening...

60.1K

Verified Solution

Question

Accounting

need a help in this exercise image
3. Bill Braddock is considering opening a Fast 'n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $16,400, Motor oil $2.00 per quart. He estimates that each oil change will require 5 quarts of oil. Oil filters will cost $3.00 each. He must also pay The Fast 'n Clean Corporation a franchise fee of \$1.10 per oil change, since he will operate the business as a franchise. In addition, utility costs are expected to behave in relation to the number of oil changes as follows: Bill Braddock anticipates that he can provide the oil change service with a niter at \$25 each. Instructions: (a) Using the high-low method, determine variable costs per unit and total fixed costs. (b) Determine the break-even point in number of oil changes and sales dollars. (c) Without regard to your answers in parts (a) and (b), determine the oil changes required to earn net income of $20,000, assuming fixed costs are $32,000 and the contribution margin per unit is $8

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Nervous System, Circulatory System, Immune System. How the three systems work together to maintain homeostasis This will...

Medical Sciences
Q

Lightweight Aggregate Production 1-how much of the materials should be melted at the sintering temperature selected in...

Civil Engineering
Q

Question 8 If an mRNA nucleotide sequence was AAA the corresponding the tRNA would be...

Biology
Q

What is an organelle?OA small structure within the cell that serves specialized functions.OA specialized protein...

Biology
Q

Figure shows two circular rings of radii a b a b joined together by wire...

Physics
Q

Is it possible to decrease the length of a vector using subsetting without redefining the...

Statistics
Q

Find the distance between the pair of points If necessary express answers in simplified radical...

Calculus
Q

5 Ali plans to go to college in a year and needs to save for...

Algebra
Q

Determine the surface area of the sides and roof in square feet and the volume...

Algebra
Q

Using the graph and table as a reference identify the Domain of the function f...

Algebra
Q

The Biltmore Trust is a simple trust. Crawford is its sole beneficiary. In thecurrent year,...

Accounting
Q

sleeping with the fishes Use whole numbers for all of your answers. Incorrect Question...

Accounting