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Please answer A, B and C. Sell Block prepares three types of simple tax returns: individual, partnerships, and (small) corporations. The tax returns have the
Please answer A, B and C.
Sell Block prepares three types of simple tax returns: individual, partnerships, and (small) corporations. The tax returns have the following characteristics. Individuals Partnerships Corporations $ 200 $1,000 $2,000 Price charged per tax return Variable cost per tax return (including wage paid to tax preparer) Expected tax returns prepared per year $ 180 60,000 $ 900 4,000 $ 1,800 16,000 The total fixed costs per year for the company are $3,690,000 Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point. c. Suppose the product sales mix changes so that for every ten tax returns prepared, six are for individuals, one is for a partnership, and three are for corporations. Now what is the break-even volume for Sell BlockStep by Step Solution
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