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Bramble Tax Services provides primarily two lines of services accounting compilation and tax return preparation, Accounting compilation services represent 80% of its revenue and provide
Bramble Tax Services provides primarily two lines of services accounting compilation and tax return preparation, Accounting compilation services represent 80% of its revenue and provide a contribution margin ratio of 30%. Tax return preparation services represent 40% of its revenue and provide a 40% contribution margin ratio, The company's fixed costs are $3,855,600 (a) Your answer is correct Calculate the revenue from each type of service that the company must achieve to break even Revenue Accounting $ 7711200 Tax 3855600 ) (b) X Your answer is incorrect The company has a desired net income of $ 1,428,000. What amount of revenue would Bramble earn from tax return preparation services if it achieves this goal with the current sales mix? Tax $ 3962700
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