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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 $67,600. Variable Cost Type of Return Sales Mix Fee Charged per Return. Easy 20% $ 80 $ 50 Moderate Business 20% 60% 190 460 110 280 (1) Determine the weighted-average contribution margin. Easy Moderate Business Sales mix Contribution margin per return Total per unit 20% 20% 60% Weighted-average contribution margin (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator. 7 Denominator: (3) Determine the number of units of each product that will be sold at the break-even point. Number of units to break even. Sales mix Easy Moderate Business Break Even Units Break even units Unaales at the break-even point
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