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Chapter 3 Cost-Volume-Profit Analysis and Planning LO4 - Multiple Product Break-Even Analysis Joe's Tax Service prepares tax returns for low- to middle-income taxpayers. Its service
Chapter 3 Cost-Volume-Profit Analysis and Planning LO4 - Multiple Product Break-Even Analysis Joe's Tax Service prepares tax returns for low- to middle-income taxpayers. Its service operates January 2 through April 15 at a counter in a local grocery store. All jobs are classified into one of three catego- ries: standard, multiform, and complex. Following is information for last year. Also, last year, the fixed cost of rent, utilities, and so forth were $50,000. Homework ( Standard Multiform Billing rate.... Average variable costs.. Average contribution margin Number of returns prepared... $50 (30) $20 $125 (75) $ 50 Complex $250 (150) $100 1,750 500 250 Required a. Determine Joe's break-even dollar sales volume. b. Determine Joe's margin of safety in sales dollars. c. Prepare a profit-volume graph for Joe's Tax Service. L03
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