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 $48,640. Type of Return Easy Moderate Business Sales Mix Fee Charged $ 70 170 410 Easy Moderate Business 30% 50 % 20% (1) Determine the weighted-average contribution margin. Sales mix Variable Cost per Return $ 40 100 250 30% 50% 20% Contribution margin per return Weighted-average contribution margin (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: 1 Denominator: / = = Total per unit Break Even Units Break even units 0

Exercise 1823 (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 $48,640. (1) Determine the weighted-average contribution margin. \begin{tabular}{|l|r|r|r|r|} & \multicolumn{2}{|c|}{ Sales mix } & Contribution margin per retum & Total per unit \\ \hline Easy & 30% & $ & 30.00 & $ \\ \hline Moderate & 50% & & 70.00 & \\ \hline Business & 20% & & 160.00 & 35.00 \\ \hline & & Weighted-average contribution margin & & 32.00 \\ \hline \end{tabular} (2) Determine the break-oven point in units using the weighted-average contribution margin. \begin{tabular}{|c|c|c|c|c|} \hline (2) Determine the break-even point in units using the weighted-average contribution margin. & Denominator: & Break Even Units \\ \hline Numerator: & 1 & Break even units & \\ \hline & 1 & & \\ \hline \end{tabular} (3) Determine the number of units of each product that will be sold at the break-oven point. \begin{tabular}{|l|l|l|l|} \hline & Sales mix & Number of units to break even. & \\ \hline Easy & & Units sales at the break-even point \\ \hline Moderate & & & \\ \hline Business & & & \\ \hline & & \\ \hline \end{tabular}