Multiple Product Break-Even Analysis Joe's Tax Service provides professional accounting and tax services. All tax return services 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 $70,000.

Standard-Multiform-Complex

Billing rate $70 $145 $270

Average variable costs (30) (75) (150)

Average contribution margin $40 $70 $120

Number of returns prepared 1,750 500 250

Required (a.) Determine Joe's break-even dollar sales volume. Enter billing rates and contribution margins using all decimals, when needed. Round contribution margin ratio to three decimal places.

Round break-even sales volume to the nearest dollar.

Product

Weighted Billing Rate

Weighted Contribution Margin

Standard Answer Answer

Multiform Answer Answer

Complex Answer Answer

Total Answer Answer

Contribution margin ratio: Answer

Break-even sales volume:

Answer (b.) Determine Joe's margin of safety in sales dollars. Hint: Use weighted average billing rate. Round answer to the nearest whole number.