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Question (b) please Pronghorn Tax Services provides primarily two lines of service: accounting compilation and tax return preparation. Accounting compilation services represent 60% of its
Question (b) please
Pronghorn Tax Services provides primarily two lines of service: accounting compilation and tax return preparation. Accounting compilation services represent 60% of its revenue and provide a contribution margin ratio of 30%. Tax return preparation services represent 40% of its revenue and provide a 40% contribution margin ratio. The company's fixed costs are $4,773,600. (a) Your answer has been saved. See score details after the due date. Calculate the revenue from each type of service that the company must achieve to break even. The company has a desired net income of $1,768,000. What amount of revenue would Pronghorn earn from tax return preparation services if it achieves this goal with the current sales mix? Tax$ Step by Step Solution
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