Problem
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.
(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?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.