Question

POQ R has 700 tance vie cales and provides a barb a ti The delt perform o dowe twee of changed t o the dec e Calculate the door to each type of that the consider t he water t reate d to place The company has a este recome of 532.000 per service but what is the door medi o per Click if you would like to show Work for this question: Osen Shot Work

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Part 1) Weighted average contribution margin = sales mix * contribution margin of repective product = (70%*20%)+(30%*30%) = 14% +9% = 23% Total Break even sales = Fixed Cost / weighted average contribution margin = 15700000/23% 1 = $ 68260870 Break even sales of Oil Changes = Total break even sale *70% != 68260870*70% i = $ 47782609 47782609 Break even sales of break repair = Total break even sale *30% 3 = 68260870*30% = $ 20478261 | Thus the final answer ? Oil Changes 3 Break Repair 47782609 20478261

Part 2) sales by each service outlet to earn desired income = (Fixed Cost per outlet + desired Profit) / weighted average contribution margin = (78500+52000)/23% = $ 567391 Break even sales of Oil Changes = Total desired sales * 70% = 567391*70% = $397174 Break even sales of break repair = desired sale *30% = 567391*30% = $ 170217 Thus the final answer Oil Changes - Break Repair 397174 170217