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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

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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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