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 5:3:2 (easy, moderate, business), Fixed costs total $18,000 for the tax season Pee Charged 5 50 Type of Return Easy (form 104DER) Moderate (form 1040) Business Variable cost per Return $ 30 75 100 125 275 (1) Determine the selling price per composite unit. Ratio Total per composite unit 250.00 $ 5 $ Fee Charged 50.00 125.00 275.00 375.00 Easy form 1040EZ) Moderate (form 1040) Business 3 550.00 2 $ 1,175.00 Total per composite unit 150.00 . $ (2) Determine the variable costs per composite unit. Ratio Variable cost per return Easy (form 1040EZ) 5 s 30.00 3 75.00 Moderate (form 1040) Business 2 100.00 225.00 200.00 575.00 $ Moderate (form 1040) 3 125.00 275.00 375.00 550.00 Business 2 1.175.00 (2) Determine the variable costs per composite unit. Ratio Variable cost per retum Easy (form 1040EZ) 5 $ 30.00 Moderate (form 1040) 3 75.00 Business 2 100.00 $ NU Total per composite unit 150.00 225.00 200.00 575.00 $ $ Contribution margin per composite unit Sales Less: Variable costs Contribution margin 1,175.00 575.00 $ 600.00 es Break Even Units (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: Contribution margin per Total fixed costs unit Break even units 600.00 30.00 composite units s 18,000 (4) Determine the number of units of each product that will be sold at the break-even point. Number per Number of composite Units sales at the break-even point composite unit units to break oven. Easy (form 1040EZ) 5 60.00 Moderate (form 1040) 3 60.00 Business 2 60.00 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 5.3.2 (easy, moderate, business). Fixed costs total $18,000 for the tax season Type of Return Eany form 1040) Moderate (form 1040) Business Tee Charged $50 125 275 Variable Cost per Return 30 75 100 (1) Determine the selling price per composite unit Ratio Total per composite unit 250.00 $ 5$ Easy (form 1040EZ) Moderate (for 1040) Fee Charged 50.00 125.00 275.00 375.00 3 NW 550.00 2 Business 1,175.00 $ (2) Determine the variable costs per composite unit Ratio Variable cost per retum Easy (form 1040EZ) 5 $ 30.00 Moderate (form 1040) 3 75.00 Business 2 100.00 Total per composite unit 150.00 225.00 200.00 575.00 NO $ $ Contribution margin per composite unit Sales Less: Variable costs 1,175.00 575.00 600.00 $