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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 Easy (form 1040EZ) Moderate (form 1040) Business Fee Charged $ 32 107 257 Variable Cost per Return $ 21 66 91 (1) Determine the selling price per composite unit. Ratio Fee Charged Total per composite unit Easy (form 1040EZ) 4 Moderate (form 1040) 3 Business 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 Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: 1 Choose Denominator: Break Even Units 1 II Break even units 0 (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 break even. Units sales at the break-even point composite unit Easy (form 1040EZ) Moderate (form 1040) Business
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