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university of california Operations And Supply Chain Management Assignment Help - Cost Accounting


Question - Question 2
Rapid Auto has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines
of service: oil changes and brake repair. Oil change-related services represent 65% of its sales and
provide a contribution margin ratio of 20%. Brake repair represents 35% of its sales and provides a
60% contribution margin ratio. The company's fixed costs are $16,000,000 (that is, $80,000 per
service outlet).
Calculate the dollar amount of each type of service that the company must provide in order to break
even. (Round computations for weighted-average contribution margin to 2 decimal places, e.g. 10.50,
and final answers to 0 decimal places, e.g. 125.) Oil changes $ Break repairs $

The company has a desired net inco ...Read More

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