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NEED HELP WITH ALL PARTS OF Question R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs
NEED HELP WITH ALL PARTS OF Question
R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns follow. Fixed costs total $18,000. Type of Return Easy Moderate Business Sales Mix Fee Charged 50% $ 50 30% 125 20% 275 Variable Cost per Return $ 30 75 100 (1) Determine the weighted average contribution margin. Sales mix Contribution margin per return Total per unit Easy 50% $ 855.00 Moderate 30% Business 20% Weighted average contribution margin Break Even Units (2) Determine the break-even point in units using the weighted average contribution margin. Numerator: 1 Denominator: Total fixed costs 1 Weighted average contribution margin per unit $ 22,230 / $ 855.00 Break even units E 26 returns (3) Determine the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. Units sales at the break-even point Easy 50% Moderate 30% Business 20%Step by Step Solution
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