User Account

All Pages

Calculate the dollar amount of each type of service

Assignment Help Accounting Basics
Reference no: EM131772206

Question - Rapid Auto 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 63% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 37% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $15,890,700 (that is, $79,454 per service outlet).

Calculate the dollar amount of each type of service that the company must provide in order to break even.

A) Oil Change =

B) Break Repair =

The company has a desired net income of $59,766 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?

A) Oil Change

B) Break Repair

Reference no: EM131772206

Questions Cloud

Determine the present value of the geometric annuity : A workers compensation medical claim is set up to cover medical costs for the next 12 years. It will make an initial payment at time t=0 of $10,218.
What is the per-unit conversion cost : If the unit cost of materials is $4 and the costs assigned to the 800 units is $6,000, what is the per-unit conversion cost
What amount should m recognize as compensation expense : An option-pricing model estimates the fair value for the options to be $5 on the date of grant. What amount should M recognize as compensation expense for 2009
Explain the double entry accounting system : Explain the double entry accounting system and why each journal entry includes at least one debit and one credit which both are equal
Calculate the dollar amount of each type of service : Calculate the dollar amount of each type of service that the company must provide in order to break even
Explain briefly what the account is and what category : Catergorize and explain each one in which financial statement account is reported on the balance sheet or the income statement
Explaining the weaknesses in internal control : Instructions: Write a letter to Jerry Mays, owner of the Manhattan Company, explaining the weaknesses in internal control
Define the relationship between the value of a put option : Define the relationship between the value of a put option & the following six factors: Stock Price, the Exercise (and/or Strike) price, the prevailing Interest.
Article on change management- how change can be implemented : Identify the objectives or key points in the assignment - discuss both the positive and negative points based on your overall judgment

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd