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E6-7Rapid 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). Instructions EXCEL(a) Calculate the dollar amount of each type of service that the company must provide in order to break even.


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