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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
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 $60,000. Billing rate Average variable costs Average contribution margin Number of returns prepared Standard Multiform Complex $60 $135 $260 (30) (75) (150) $30 $ 60 $110 1,750 500 250 Required (a.) Determine Joe's break-even dollar sales volume. Round contribution margin to three decimal places. Round break-even sales volume to the nearest dollar. Product Standard Multiform Complex Total Contribution margin ratio: Break-even sales volume: Weighted Selling Price 42 27 26 $ 95 Weighted Contribution Margin $ 21 12 11 $ 44 46.316 X $ 129,545 (6.) Determine Joe's margin of safety in sales dollars. Round answer to the nearest whole number. $ 107,955
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