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Exercise 18-23 (Algo) CVP analysis with three products LO P3 R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for
Exercise 18-23 (Algo) CVP analysis with three products LO P3 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 $29,120. Variable Cost Type of Return Easy Sales Mix Fee Charged 50% $ 50 per Return $ 30 Moderate 20% 120 70 Business 30% 290 170 (1) Determine the weighted-average contribution margin. Easy Moderate Business Sales mix Contribution margin per return Total per unit 50% 20% 30% 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 0 Sales mix (3) Determine the number of units of each product that will be sold at the break-even point. Number of units to break even. Units sales at the break-even point Easy Moderate Business
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