Joes Tax Service prepares tax returns for low- to middle-income taxpayers. Its service operates January 2 through
Question:
Joe’s Tax Service prepares tax returns for low- to middle-income taxpayers. Its service operates January 2 through April 15 at a counter in a local grocery store. All jobs are classified into one of three categories: standard, multiform, and complex. Following is information for last year. Also, last year, the fixed omeWo, cost of rent, utilities, and so forth were $50,000.
Required
a. Determine Joe’s break-even dollar sales volume.
b. Determine Joe’s margin of safety in sales dollars.
c. Prepare a profit-volume graph for Joe’s Tax Service.
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