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Preston Services offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follows. Preston
Preston Services offers tax and consulting services to individuals and small businesses. | ||||||
Data for fees and costs of three types of tax returns follows. | ||||||
Preston provides services in the ratio of 4:4:2 (easy, moderate, business). | ||||||
Fixed Costs total 20,000 for the tax season. | ||||||
Use this information to determine the following; | ||||||
1) Selling price per composite unit | ||||||
2) Variable Costs per compsite unit | ||||||
3) Breakeven point in composite units | ||||||
4) Number of units of each product that will be sold at the breakeven point | ||||||
Type of Tax Return | Fee Charged | Variable Cost per Return | ||||
Easy | $50 | $30 | ||||
Moderate | $125 | $75 | ||||
Business | $275 | $100 | ||||
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