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15) R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns

15)

R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow. R&R provides services in the ratio of 4:4:2 (easy, moderate, business). Fixed costs total $16,470 for the tax season.

Type of Return Fee Charged Variable Cost per Return
Easy (form 1040EZ) $ 46 $ 28
Moderate (form 1040) 121 73
Business 271 98

A) Determine the selling price per composite unit B) Determine the variable cost per composite unit -Contribution margin per composite unit C) Determine the break-even point in composite unit D) Determine the number of units each product that will be sold at the break even point

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