Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

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 Multiform Complex Total Contribution margin ratio: Break-even sales volume: (b.) Determine Joe's margin of safety in sales dollars. Hint: Use weighted average billing rate. Round answer to the nearest whole number. $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ziglar On Selling The Ultimate Handbook For The Complete Sales Professional

Authors: Zig Ziglar

1st Edition

0785288937, 978-0785288930

More Books

Students also viewed these Finance questions