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Homework help!! R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax
Homework help!!
R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow. R&R provides services in the ratio of 5:3:2 (easy, moderate, business). Fixed costs total $18,000 for the tax season Variable Cost Type of Return Easy (form 1040EZ) Moderate (form 1040) Business Fee Charged per Return $ 50 125 275 S 30 75 100 (1) Determine the selling price per composite unit Ratio Fee Charged Total per composite unit Easy (form 1040EZ) Moderate (form 1040) Business 50.00 125.00 275.00 250.00 375.00 550.00 1,175.00 3 2 (2) Determine the variable costs per composite unit. Ratio Variable cost per return Total per composite unit Easy (form 1040EZ) Moderate (form 1040) Business 2 Contribution margin per composite unit 1,175.00 0.00 Contribution margin (3) Determine the break-even point in composite unitsStep by Step Solution
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