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PLEASE EXPLAIN STEP BY STEP Multiple Product Break-Even Analysis Joe's Tax Service prepares tax returns for low-to middle-income taxpayers. Its service operates January 2 through

PLEASE EXPLAIN STEP BY STEP

Multiple Product Break-Even Analysis Joe's Tax Service prepares tax returns for low-to middle-income taxpayers. Its service operates January 2 through April 15 at a counter in a local grocery store. All jobs are classified into one of three categories: standard, multiform, and complex. Following is information for last year. Also, last year, the fixed cost of rent, utilities, and so forth were $70,000.

Standard Multiform Complex
Billing rate $70 $145 $270
Average variable costs (30) (75) (150)
Average contribution margin $40 $70 $120
Number of returns prepared 1,750 500 250

Required (a.) Determine Joe's break-even dollar sales volume.

  • Round contribution margin to three decimal places.
  • Round break-even sales volume to the nearest dollar.

Product

Weighted

Selling Price

Weighted

Contribution

Margin

Standard $Answer $Answer
Multiform Answer Answer
Complex Answer Answer
Total $ Answer $ Answer
Contribution margin ratio: Answer
Break-even sales volume: $Answer

(b.) Determine Joe's margin of safety in sales dollars.

Round answer to the nearest whole number. $Answer

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