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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 $29,120. Variable Cost Type of Return Sales Mix Fee Charged per Return Easy Moderate Business 50% 20% 30% $ 50 $ 30 120 70 290 170 (1) Determine the weighted-average contribution margin. Easy Moderate Business Sales mix Contribution margin per return Total per unit 50% 20% 30% 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 (3) Determine the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even Units sales at the break-even noint
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