Cullumber Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service:...
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Cullumber 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). 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 e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.)
Sales Dollars Needed Per Product
Oil changes
Brake repair
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