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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
$15,600,000 (that is, $78,000 per service outlet).
Instructions
A. Calculate the dollar amount of each type of service that the
company must provide in order
B. The company has a desired net income of $52,000 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?
E6-12
Dalton Inc. produces and sells three products. Unit data
concerning each product is shown below.
Product
D
E
F
Selling price $200 $300 $250
Direct labor costs 30
80
35
Other variable costs 95
80
145
The company has 2,000 hours of labor available to build
inventory in anticipation of the company's peak season.
Management is trying to decide which product should be
produced. The direct labor hourly rate is $10.
Instructions
A. Determine the number of direct labor hours per unit.