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 80% of its sales and provide a contribution margin ratio of 15%. Brake repair represents 20% of its sales and provides a 45% contribution margin ratio. The company's fixed costs are $15,569,400 (that is, $77,847 per service outlet). 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 80% of its sales and provide a contribution margin ratio of 15%. Brake repair represents 20% of its sales and provides a 45% contribution margin ratio. The company's fixed costs are $15,569,400 (that is, $77,847 per service outlet)
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