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3 Exercise 21-23 (Static) CVP analysis with three products LO P3 Book Ash Pratt R&R Tax Service offers tax and consulting services to individuals

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3 Exercise 21-23 (Static) CVP analysis with three products LO P3 Book Ash Pratt R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns follow. Fixed costs total $18,000. Type of Return Easy Moderate Sales Mix Fee Charged 50% Variable Cost per Return, $ 58 $ 30 125 75 Business 20% 275 100 (1) Determine the weighted-average contribution margin. Weighted-average contribution margin 100 (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: References (3) Determine the number of units of each product that will be sold at the break-even point. Easy units Moderate units Business units " Break Even Units Break even units 0

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