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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 4:3:3 (easy, moderate, business). Fixed costs total $19,950 for the tax season.
Type of Return | Fee Charged | Variable Cost per Return | |||||||
Easy (form 1040EZ) | $ | 32 | $ | 21 | |||||
Moderate (form 1040) | 107 | 66 | |||||||
Business | 257 | 91 |
were the selling price per composien Ratio Fee Charged Total per composite unit Easy (form 1040EZ) Moderate (form 1040) Business 3 3 Total per composite unit (2) Determine the variable costs per composite unit. Ratio Variable cost per return Easy form 1040EZ) Moderate (form 1040) Business Contribution margin per composite unit Contribution margin (3) Determine the break-even point in composite units. Choose Numerator Choose Denominator. Break Even Units Break even units (4) Determine the number of units of each product that will be sold at the break-even point Number per Number of composite unts to Units sales at the break-even point composte unit break even Easy form 1045EZ Moderate for 1040 Business were the selling price per composien Ratio Fee Charged Total per composite unit Easy (form 1040EZ) Moderate (form 1040) Business 3 3 Total per composite unit (2) Determine the variable costs per composite unit. Ratio Variable cost per return Easy form 1040EZ) Moderate (form 1040) Business Contribution margin per composite unit Contribution margin (3) Determine the break-even point in composite units. Choose Numerator Choose Denominator. Break Even Units Break even units (4) Determine the number of units of each product that will be sold at the break-even point Number per Number of composite unts to Units sales at the break-even point composte unit break even Easy form 1045EZ Moderate for 1040 Business
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