**Wildhorse Repairs Financial Analysis**Wildhorse Repairs operates 200 auto-maintenance service outlets nationwide. It offers two main services: oil changes and brake repair. Here is a breakdown of their financial operations:**Service Details:**- **Oil Change Services:** - Represents 70% of sales - Contribution Margin Ratio: 20% - **Brake Repair Services:** - Represents 30% of sales - Contribution Margin Ratio: 40%**Company Financials:**- Fixed Costs: $13,416,000 - Which is approximately $67,080 per service outlet**Objective:**Calculate the required sales dollars for each type of service to achieve the break-even point using a Weighted-Average Contribution Margin Ratio.**Instructions:**- Round the Weighted-Average Contribution Margin Ratio to 2 decimal places.- Round final sales dollar calculations to 0 decimal places.**Results:**| Service Type | Sales Dollars Needed ||----------------|-----------------------|| Oil Changes | $36,120,000 || Brake Repair | $15,480,000 |All calculations ensure that the business reaches its break-even point, balancing costs with revenue. The company has a desired net income of $44,720 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 outlet? **(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.)****Sales Dollars Needed Per Service Outlet**- Oil changes: $ [input box]- Brake repair: $ [input box]

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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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