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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 $48,640. Variable Cost Type of Return Easy Sales Mix 30% Moderate 50% Business 20% Fee Charged $ 70 170 410 per Return $ 40 100 250 (1) Determine the weighted-average contribution margin. Easy Moderate Business Sales mix Contribution margin per return Total per unit 30% 50% 20% 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. Number of units to break even. Sales mix Easy Moderate Business = Break Even Units = Break even units 0 Units sales at the break-even point
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