university of california Operations And Supply Chain Management Assignment Help - Cost Accounting

Question - Question 2
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 65% of its sales and
provide a contribution margin ratio of 20%. Brake repair represents 35% of its sales and provides a
60% contribution margin ratio. The company's fixed costs are $16,000,000 (that is, $80,000 per
service outlet).
Calculate the dollar amount of each type of service that the company must provide in order to break
even. (Round computations for weighted-average contribution margin to 2 decimal places, e.g. 10.50,
and final answers to 0 decimal places, e.g. 125.) Oil changes $ Break repairs $

The company has a desired net inco ...Read More me of $60,000 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? (Round answers to 0 decimal places, e.g. 125.) Oil changes $ Break repairs $
Question 3
Mega Electronix sells television sets and DVD players. The business is divided into two divisions
along product lines. CVP income statements for a recent quarter's activity are presented below.
TV Division DVD Division Total Sales $600,000 $400,000 $1,000,000 Variable costs 450,000 240,000
690,000 Contribution margin $150,000 $160,000 310,000 Fixed costs 124,000 Net income $186,000
Determine sales mix percentage and contribution margin ratio for each division. (Round answers to 2
decimal places, e.g. .50.) Sales Mix Percentage TV Division DVD Division
Contribution margin ratio
TV Division DVD Division

Calculate the company's weighted-average contribution margin ratio. (Round answer to 2 decimal
places, e.g. .50.)

Calculate the company's break-even point in dollars. (Use the rounded amount from the previous
question when calculating the answer for this question.) $

Determine the sales level in dollars for each division at the break-even point. TV Division $ DVD
Division $ ...Read Less

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