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3-52. Multiproduct CVP Analysis Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified pricing model with two alternatives for taxpayers: Standard Deduction

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3-52. Multiproduct CVP Analysis Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified pricing model with two alternatives for taxpayers: Standard Deduction (Standard) or Itemized Deductions (Itemized). Price and variable costs for the two services are listed below. Sales price (per return). Standard Itemized $50 $250 10 30 Variable costs (per return) The annual fixed costs at Grixdale are $262,500. Based on experience, the owner estimates that standard deduction returns represent 25 percent of the the firm's business. Required How many Standard Deduction and Itemized Deduction returns must be filed annually to break even?

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