PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service:...
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PDQ 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 $15,699,800 (that is, $78,499 per service outlet). 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 decimal places, e.g. 2,510.) Oil changes $ Brake repair $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit
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