R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow. R&R provides services in the ratio of 3:3:4 (easy, moderate, business). Fixed costs total $24,360 for the tax season Variable Cost per Return Charged 42 Type of Return Easy (form 1040EZ) Moderate (form 1040) Business s 26 71 96 267 (1) Determine the selling price per composite unit. Ratio Fee Charged Total per composite unit Easy (form 1040EZ) Moderate (form 1040) Business 4 (2) Determine the variable costs per composite unit. Total per composite unit Ratio Variable cost per return Easy (form 1040EZ) Moderate (form 1040) Business Contribution margin per composite unit Contribution margin (3) Determine the break-even point in composite units. Break Even Units Choose Numerator: Choose Denominator: Break even units (4) Determine the number of units of each product that will be sold at the break-even point. Number per Number of composite units to composite unit Units sales at the break-even point break even. Easy (form 1040EZ) Moderate (form 1040) Business