Question
Multiple Product Break-Even Analysis TPG Tax & Accounting is a full-service CPA firm located in Apache Junction, Arizona. Assume that tax return services are classified
Multiple Product Break-Even Analysis TPG Tax & Accounting is a full-service CPA firm located in Apache Junction, Arizona. Assume that tax return services are classified into one of three categories: standard, complex, and full-service (includes end-of-year bookkeeping with tax return preparation). Assume that TPGs fixed costs (rent, utilities, wages, and so forth) totaled $180,000 last year. Additional information from the prior year follows.
Standard | Complex | Full-Service | |||
---|---|---|---|---|---|
Billing rate | $125 | $250 | $150 | ||
Average variable costs | (45) | (65) | (50) | ||
Average contribution margin | $80 | $185 | $100 | ||
Number of returns prepared | 1,000 | 200 | 800 |
Required (a.) Using sales dollar analysis, determine TPGs 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 |
Complex | Answer | Answer |
Full-Service | Answer | Answer |
Total | Answer | Answer |
Contribution margin ratio: | Answer | |
Break-even sales volume: | Answer |
(b.) Determine TPG's margin of safety in sales dollars. Hint: Use weighted average billing rate.
$Answer
Contribution Income Statement and Operating Leverage Wilmette Valley Frus Company started as a smal camery style operation in 1909. The company now processes, on average, 20 milion pounds of berries each year, Flash-frozen berries are sold in 30 pound packs to retailers. Assume 650,000 packs were sold for $75 each last year. Varable costs were 342 per pack and forced costs totaled $14,250,000 (a) Prepare a contrbution income statement for the year ended December 31, HNT: Use a negative sign with both costs answers. WILLAMETTE VALLEY FRUIT COMPANY For the Year Ended December 31 750.000 Variable 27.300.000 Contbuona 050 000 Red 100 X Determine the company's operating letrage Round your awer to two decine 0 Id Cakulate the percentage change in protest sales deceases 10 percentatore dem place! Joh Management is considering the purchase of several neces The costs to $15.500,000 and reduce variable costs to $40 per crate. Calcate the effect of the onerating and draw to decimal places
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