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6 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
6 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 $49.880. Type of Return Easy Moderate Business Sales Mix Fee Charged 10% $40 18% 180 80% 240 Variable Cost per Return $ 20 60 140 Total per unit (1) Determine the weighted average contribution margin. Sales mix Contribution margin per return Easy 10% Moderate 10% Business 80% Weighted average contribution margin (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: 1 Denominator: Break Even Units Break even units Units sales at the break-even point (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 Easy Moderate Business
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