Composite Units

R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow R&R provides services in the ratio of 3:34 (easy, moderate, business). Fixed costs total $24,360 for the tax season Fee Charged $ 42 117 267 Variable Cost per Return $ 26 Type of Return Easy (forn 1840EZ) Moderate (forn 1640) Business (1) Determine the selling price per composite unit. Ratio Fee Charged Total per composite unit Easy (form 1040EZ) Moderate (form 1040) Business Total per composite unit (2) Determine the variable costs per composite unit. Ratio Variable cost per return Easy (form 1040EZ) Moderate (form 1040) Business Contribution margin per composite unit Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: Break Even Units Break even units (4) Determine the number of units of each product that will be sold at the break-even point. Number per Number of composite units to Units sales at the break-even point break even composite unit Easy (form 1040EZ) Moderate (form 1040) Business