Question
Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified pricing model with two alternatives for taxpayers: Standard Deduction (Standard) or Itemized Deductions (Itemized).
Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified pricing model with two alternatives for taxpayers: Standard Deduction (Standard) or Itemized Deductions (Itemized). Price and variable costs for the two services are listed below. Standard Itemized Sales price (per return) $ 240.00 $ 630.00 Variable costs (per return) 200.00 410.00 The annual fixed costs at Grixdale are $595,000. Based on experience, the owner estimates that Standard Deduction returns represent 25 percent of the the firm's business.
Required: How many Standard Deduction and Itemized Deduction returns must be filed annually to break even
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