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Please help! I can't figure out how to complete the problem. Thank you! QUESTION 1 Incorrect Mark 0.00 out of 11.00P Flag question Multiple Product
Please help! I can't figure out how to complete the problem.
Thank you!
QUESTION 1 Incorrect Mark 0.00 out of 11.00P Flag question 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 $55,000. Standard Multiform Complex Billing rate Average variable costs Average contribution margin Number of returns prepared $55 (30) $25 $130 (75) (150) $105 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 Weighted Weighted Selling Price Product Margin Standard 87,500 X35,000 X Multiform 62,500 X 25,000 x Complex 62,500 X 25,000 X Total $ 212,500 85,000 x Contribution margin ratio 40 X Break-even sales volume: s125,000 X (b.) Determine Joe's margin of safety in sales dollars Round answer to the nearest dollar 87,500 xStep by Step Solution
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