Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed
image text in transcribed
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 4:4:2 (easy, moderate, business). Fixect costs total $18,000 for the tax season Variable cost Type of Return Charged Easy (fore 1042) Moderate (forn 1040) Fee 143 293 per Return $19 34 100 Business Fee Charged Total de composite unit (1) Determine the selling price per composite unit. Ratio Easy form 1000EZ) Moderate form 1040) Business $ 68.00 272.00 143.00 572.00 293.00 586,00 1.430.00 $ (2) Determine the variable costs per composite unit, Ratio Variable cost per totum 39.00 Easy do 1040EZ 41 $ $ Total per composite unit 158.00 336.00 Moderate for 1040) 84.00 Business 199.00 218.00 7 10:00 $ S 1.43000 Contribution margin per composite unit Sales Less Variable costs Contribution margin 710.00 (3) Determine the break even point in composite units. Choose Numeratori Choose Denominator: Total fixed costs Fixed costs per unit Break Even Units Brookoven units 1.430.00 (2) Determine the variable costs per composite unit. Ratio Easy (form 1040EZ) Moderate form 1040) Business Variable cost per return 39.00 84.00 109.00 Total per composite unit 158.00 336.00 218.00 710.00 Contribution margin per composite unit Sales Less: variable costs Contribution margin 1,43000 710.00 (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: Tot fixed costs Fixed costs per unit Break Even Units Break even units Units sales at the break even point (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 break even Easy (form 1040EZ) Moderate form 1040) Business

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

=+how will this error be detected?

Answered: 1 week ago