Qwik repairs has over 200 auto-maintenance service outlets, Ask an Expert

Accounting

Qwik Repairs has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change%u2013related services represent 63% of its sales and provide a contribution margin ratio of 19%. Brake repair represents 37% of its sales and provides a 61% contribution margin ratio. The company%u2019s fixed costs are $16,150,000 (that is, $80,750 per service outlet).

(a) 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 3 decimal places e.g. 0.255 and round final answers to 0 decimal places, e.g. 2,510.)

(b) The company has a desired net income of $60,043 per service outlet. What is the dollar amount of each type of service that must be provided by each service outlet to meet its target net income per outlet? (Use Weighted-Average Contribution Margin Ratio rounded to 3 decimal places e.g. 0.255 and round final answers to 0 decimal places, e.g. 2,510.)

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9957494

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - computing a basket purchase allocation and

Question - Computing a Basket Purchase Allocation, and Recording Depreciation under Three Alternative Methods At the beginning of the year, Wong's Martial Arts Centre bought three used fitness machines from Hangar Inc. f ...

Questions -q1 tam co is negotiating for the purchase of

Questions - Q1. Tam Co. is negotiating for the purchase of equipment that would cost $100,000, with the expectation that $20,000 per year could be saved in after-tax cash costs if the equipment were acquired. The equipme ...

Question - on january 2 2017 alpha corporation issued 15000

Question - On January 2, 2017, Alpha Corporation issued 15,000 shares of $10 par value common stock for $15 per share. On July 1, 2017, Alpha reacquired 1,000 of these shares when they were trading $20 each. September 1, ...

Questions -1 star coach llc is in the business of

Questions - 1. Star Coach, L.L.C., is in the business of converting sport utility vehicles and pickup trucks into custom vehicles. Star Coach performs the labor involved in in- stalling parts supplied by other companies ...

Question -a calculate the ending balance of the

Question - (a) Calculate the ending balance of the Manufacturing Overhead account for November. Lawler and Associates, a C.P.A. firm, uses job order costing to capture the costs of its audit jobs. There were no audit job ...

Question - the pritzker music pavilion in downtown chicago

Question - The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts live concerts attended by over half a million patrons a year. A group o ...

Question - a guy doing software coding a company offers him

Question - A guy doing software coding. A company offers him $100,000 as contract to have the right to use his in their procurement software package. The right of use is up to 10,000 packages, if the procurement sells mo ...

Question - following are the transactions for abc computer

Question - Following are the transactions for ABC Computer Service's first month of business, September 2018: Sept 1 The owner invested $10,000 into the business in exchange for common stock. Sept 4 Purchased equipment f ...

Question - jalisco corporation has net income of 281000 for

Question - Jalisco Corporation has net income of $281,000 for the year ended December 31, 2010 and common shares outstanding of 100,000. The company did not issue or repurchase additional common shares during the year. J ...

Questions -q1 isaiah an nba point guard is advised by his

Questions - Q1. Isaiah an NBA point guard, is advised by his physician to install a Jacuzzi in his residence since he is afflicted with a back problem incurred after years of running up and down the court. The cost of in ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert