Faculty of Continuing Education and Training Assignment 02- Fall 2020

1. For H&R Block Canada what are examples of (a) shifting the demand curve to the right to get a higher price for tax filing (movement of the demand curve) and (b) pricing decisions involving moving along a demand curve?

2. Assume an H&R Block Canada location had a fixed cost of $12,000 to cover during tax filing season, and variable costs for each service of $29. What would the break- even point be for professional services of (a) 109, (b) $69, and (c) $39? Also, (d) if H&R Block Canada achieves the sales target of 2,000 units at the $129 retail price, what will its profit be?

3. Assume that H&R Block Canada opened an office to a remote part of Canada where fixed costs were cut in half to $6,000 and variable costs for each service were dropped to $19, what would be what will be the (a) new break-even point at a $129 retail price for this line of services and (b) the new profit if it produces 2,000 returns?

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