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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 $39,560. Variable Cost Type of Return Sales Mix Fee Charged per Return Easy Moderate 10% $ 40 $ 20 10% 100 60 Business 80% 240 140 (1) Determine the weighted-average contribution margin. Easy Moderate Business Sales mix Contribution margin per return Total per unit 10% 10% 80% Weighted-average contribution margin (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: (3) Determine the number of units of each product that will be sold at the break-even point. Break Even Units Break even units
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