Sheridan 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 20%. Brake repair represents 20% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $15,580,800 (that is, $77,904 per service outlet). Sales mix is determined based upon total sales dollars.
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- Flounder Service 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 80% of its sales and provide a contribution margin ratio of 15%. Brake repair represents 20 % of its sales and provides a 65% contribution margin ratio. The company's fixed costs are $12,150,000 (or $67,500 per service outlet). (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. Oil changes 2$ Brake repair 2$Wildhorse 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 40% contribution margin ratio. The company's fixed costs are $13,416,000 (that is, $67,080 per service outlet). Sales mix is determined based upon total sales dollars.Qwik Service 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 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company’s fixed costs are $12,000,000 (that is, $60,000 per service outlet). Instructions (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. (b) The company has a desired net income of $45,000 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?
- 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 $15,649,200 (that is, $78,246 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 eg. 0.25 and round final answers to O decimal places, e.g. 2,510.) Sales Dollars Needed Per Product Oil changes Brake repair eTextbook and Media The company has a desired net income of $54,004 per service outlet. What is the dollar amount of each type of service that must be performed by each service outlet to meet its target net income per…Blossom 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 40% contribution margin ratio. The company's fixed costs are $12,480,000 (that is $62,400 per service outlet). Sales mix is determined based upon total sales dollars. (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 2 decimal places ag 0.25 and round final answers to O decimal places, eg 2.510) Sales Dollars Needed Per Product Oil changes Brake repairPDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: all 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 35% contribution margin ratio. The company's fixed costs are $15,709,200 (that is, $78,546 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 2 decimal places eg. 0.25 and round final answers to O decimal places, eg 2.510) Oil changes Brake repair S SUPPORT
- 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 60% of its sales and provide a contribution margin ratio of 25%. Brake repair represents 40% of its sales and provides a 45% contribution margin ratio. The company's fixed costs are $15,589,200 (that is, $77,946 per service outlet). Your answer is incorrect. 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.) Oil changes Brake repair %24P&G Company currently produces and sells two products, Life and Buoy. The following data were gathered from P&G's previous year's operations: - The company was able to sell 20,000 Life at a selling price of $20 each while 10,000 Buoy was sold at a selling price of $50. The contribution margin ratio of Life and Buoy are 40% and 30% respectively. - Each product has separate product managers which receives an annual salary of $20,000 each. The product manager is in charge of sales force utilization and compensation. Total employee benefit expense for the period amounted to $ 80,000 and $50,000 for Life and Buoy, respectively. - The product managers are also in charge of the advertising of each product. Direct advertising expenses for Life amounted to $ 15,000 while Buoy, $ 9,000. - Other direct fixed costs amounted to $ 10,000 and $ 5,000 for Life and Buoy, respectively. - Common corporate overhead expenses totaked $80,000 for the year. It is the company's policy to allocate common…Howard Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tire Division. The Tractor Division can use the tires produced by the Tire Division. The market price per tire is $70. The Tire Division has the following costs per tire: Direct material cost per tire $29 Conversion costs per tire $4(Assume the $4includes only the variable portion of conversion costs.) Fixed manufacturing overhead cost for the year is expected to total $120,000.The Tire Division expects to manufacture 60,000 tires this year. The fixed manufacturing overhead per tire is $2 ($120,000 divided by 60,000 tires). Requirements: 1. Assume that the Tire Division has excess capacity, meaning that it can produce tires for the Tractor Division without giving up any of its current tire sales to outsiders. If Howard Motors has a negotiated transfer price policy, what is the lowest acceptable transfer price? What is the highest acceptable transfer…
- CellPeak produces shelving units. The variable cost of each shelving unit comprises of direct materials of $26, direct labor of $8, packaging costs of $7 and variable overheads of $2. CellPeak has fixed overheads of $280433 and sells its shelving units for $75 each. Current sales are 25,000 shelving units per annum. What profit would CellPeak make if the company sold 18,000 shelving units?Barrington Box Enterprises has two divisions, large and small, that share the common costs of the company's communications network. The annual common costs are $4,420,000. You have been provided with the following information for the upcoming year: Calls Time on Network (hours) Large 101,000 110,000 Small 69,000 230,000 The cost accountant determined $2,720,000 of the communication network's costs were fixed and should be allocated based on the number of calls. The remaining costs should be allocated based on the time on the network. What is total communication network costs allocated to the Small Box Division, assuming the company uses dual-rates to allocate common costs?The Parts Division of Mally Company makes Part XYZ, which it sells to outside companies for $26 per unit. According to the cost accounting system, the costs of making one unit of Part XYZ consist of $8 for direct materials, $4 for direct labor, $4.50 for variable manufacturing overhead, and $1.4 for fixed manufacturing overhead. The Parts Division has capacity of 5,000 units of part XYZ each month and currently is selling 4,200 units of Part XYZ each month. The Assembly Division of Mally Company can use Part XYZ in one of its products. At present, the Assembly Division is purchasing an equivalent part from an outside supplier for $17.3 per unit. The Assembly Division needs 2,000 units of the part each month. It has been suggested that the Assembly Division buy Part XYZ from the Parts Division instead of buying the equivalent part from the outside supplier. As far as the Parts Division is concerned, what is the lowest acceptable transfer price?