Answered step by step
Verified Expert Solution
Question
1 Approved Answer
My question is just about / Contribution margin ratio: Multiple Product Break-Even Analysis TPG Tax & Accounting is a full-service CPA firm located in Apache
My question is just about / Contribution margin ratio:
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 TPG's 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 5125 $250 $150 Average variable costs (45) 165) (50) ) Average contribution margin $80 $185 $100 Number of returns prepared 1,000 200 800 Required (a.) Using sales dollar analysis, determine TPG'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 Standard Complex Full Service Total Contribution margin ratio: Break-even sales volume Weighted Weighted Contribution Billing Rate Margin $ 52.5$ 40 25 18.5 60 40 $ 147.5$ 98.5 66.78 x 269,453 $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started