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R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow.
R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow. R&R provides services in the ratio of 43:3 (easy, moderate, business). Fixed costs total $19,575 for the tax season. Type of Return Easy form 1040EE) Moderate (form 1040) Business Yee Charged $ 44 119 269 Variable Cost per Return $ 27 72 97 Foo Charged Total per composite unit (1) Determine the selling price per composite unit. Ratio Easy (form 1040EZ) Moderate (form 1040) Business 3 3 + (2) Determine the variable costs per composite unit. Ratio Variable cost per return Total per composite unit Easy (form 1040EZ) Moderate (form 1040) Business Contribution margin per composite unit 0.00 0.00 Ratio Variable cost per return Total per composite unit 4 Easy (form 1040EZ) Moderate (form 1040) 3 Business 3 Contribution margin per composite unit $ 1,340.00 0.00 Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: 1 Choose Denominator: Break Even Units 1 Break even units 0 Units sales at the break-even point (4) Determine the number of units of each product that will be sold at the break-even point. Number per Number of composite units to composite unit break even Easy (form 1040EZ) Moderate (form 1040) Business
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