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R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns follow.
R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns follow. Fixed costs total $44,100. Variable Cost Type of Return Sales Mix Fee Charged per Return Easy Moderate 50% 10% $ 50 $ 30 Business 40% 120 290 70 170 (1) Determine the weighted-average contribution margin. Easy Moderate Business Sales mix Contribution margin per return Total per unit 50% 10% 40% Weighted-average contribution margin (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: = Break Even Units = Break even units 0 Sales mix (3) Determine the number of units of each product that will be sold at the break-even point. Number of units to break even. Units sales at the break-even point Easy Moderate Business
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