Multiple Product Break-Even Analysis

Joe's Tax Service prepares tax returns for low-to middle-income taxpayers. Its service operates January 2 through April 15 at a counter in a local grocery store. All jobs are classified into one of three categories: standard, multiform, and complex. Following is information for last year. Also, last year, the fixed cost of rent, utilities, and so forth were $50,000

STD multiform complex

billing rate $50 $125 $250

avg. variable

cost (30) (75) (150)

Average

contribution $20 $50 $100

margin

Number of

returns

prepared 1,750 500 250

Determine Joe's break-even dollar sales volume.

Product

Weighted

Selling Price

Weighted

Contribution

Margin

StandardAnswer

Mark 0.00 out of 1.00

Answer

Mark 0.00 out of 1.00

MultiformAnswer

Mark 0.00 out of 1.00

Answer

ComplexAnswer

Answer

TotalAnswer

Answer

Contribution margin ratio:

Break-even sales volume:

(b.) Determine Joe's margin of safety in sales dollars.

$Answer