Exercise 19-7 (Part Level Submission) PDQ Repairs has 200 auto-maintenance servi

Question

Exercise 19-7 (Part Level Submission) PDQ Repairs has 200 auto-maintenance service outlets nationwide. It represent 70% of its sales and provide a cont company's fixed costs are $15,650,000 (that is, $78,250 per service outlet). s primarily two lines of service: oil changes and brake repair. Oil n margin ratio of 20%. Brake repair represents 30% of its sales and provides a 30% contribution margin ratio,The Calculate the dollar amount of each type of service that the rounded to 2 decimal places e.g. 0.25 and round final answers to O decimal places, e.g. 2,510.) company must provide in order to break even. (Use Weighted-Average Contribution Margin Ratio Oil changes Brake repair Click if you would like to Show Work for this question: Open Show Work The parts of this question must be completed in order. This part will be available when you complete the part above.

Explanation / Answer

Weighted average contribution margin ratio=(70%*20%)+(30%*30%)= 23% Overall Break even point=15650000/23%= $68043478 Oil changes = 68043478*70%=$47630435 Brake repair= 68043478*30%=$20413043

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