The following information relates to Oil Change Company. Oil Change Co. Projected Net Income For a Week Sales (160 cars serviced at $24 per car) Variable Expenses (160 cars at $9 per car) Contribution Margin Fixed Expenses Net Income Calculate the following: (i) Unit Contribution: (ii) Total Contribution: (iii) Break Even Point in Units (iv) Break Even Point in Dollars (v) Net Profit: $3,840 -1,440 2,400 - 2,400 $ 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following information relates to Oil Change Company.
Oil Change Co.
Projected Net Income
For a Week
Sales (160 cars serviced at $24 per car)
Variable Expenses (160 cars at $9 per car)
Contribution Margin
Fixed Expenses
Net Income
Calculate the following:
(i) Unit Contribution:
(ii) Total Contribution:
(iii) Break Even Point in Units
(iv) Break Even Point in Dollars
(v) Net Profit:
$3,840
- 1,440
2,400
- 2,400
$ 0
Transcribed Image Text:The following information relates to Oil Change Company. Oil Change Co. Projected Net Income For a Week Sales (160 cars serviced at $24 per car) Variable Expenses (160 cars at $9 per car) Contribution Margin Fixed Expenses Net Income Calculate the following: (i) Unit Contribution: (ii) Total Contribution: (iii) Break Even Point in Units (iv) Break Even Point in Dollars (v) Net Profit: $3,840 - 1,440 2,400 - 2,400 $ 0
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