Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

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

image text in transcribed
image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools for business decision making

Authors: kimmel, weygandt, kieso

4th Edition

978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461

More Books

Students explore these related Accounting questions

Question

Describe the team dynamics at Facebook.

Answered: 3 weeks ago