Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. 2. R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of ta
1.
2.
R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of ta returns follow. Fixed costs total $18,000. Type of Return Easy Moderate Business Sales Mix Fee Charged 50% $ 50 30% 125 20% 275 Variable Cost per Return $ 30 75 100 (1) Determine the weighted-average contribution margin. Sales mix Contribution margin per return Total per unit Easy 50% $ 50.00 $ 250.00 Moderate 30% 125.00 375.00 Business 20% 275.00 550.00 Weighted average contribution margin $ 1,175.00 (2) Determine the break-even point in units using the weighted average contribution margin. Numerator: Denominator: = Break Even Units / = Break even units 0 (3) Determine the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. Units sales at the break-even point Easy Moderate Business Compute the missing amounts in the contribution income statement shown below: (Round "Per Unit" answers to 2 decimal places.) Company A Company B 1,975 Number of units sold Total Per unit Total Per unit Sales $ 65.00 208,000 $ 150,400 Variable costs 39,500 Contribution margin 43,450 19,750 Fixed costs Income 46,400Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started