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grixdale tax services prepares taxes for individuals. Grixdale offers a simplified pricing model with two alternatives for tax payers: Standard Deduction ( Standard or itemized

grixdale tax services prepares taxes for individuals. Grixdale offers a simplified pricing model with two alternatives for tax payers: Standard Deduction (Standard or itemized Deductions (Itemized). Price and variable costs for the two services are listed below. Sales price (per return) $60.00 Itemized $270.00, Variable costs (per return) $20.00 Itemized $50.00. The annual fixed costs at Grixdale are $280,000. Based on experience, the owner extimates that Standard Deduction returns represent 25 percent of the firms's business. Required: How many Standard Deduction and Itemized Deduction returns must be filed annually to break even?

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