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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
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 $98,000. Type of Return Sales Mix Fee Charged Easy Moderate 20% 10% $ 80 Business 70% 190 460 Variable Cost per Return (1) Determine the weighted-average contribution margin. Easy Moderate Business $ 50 110 280 Sales mix Contribution margin per return Total per unit 20% 10% 70% 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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