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 $19,800 for the tax season.

Type of Return

Fee Charged

Variable Cost per Return

Easy (form 1040EZ)

$

64

$

37

Moderate (form 1040)

139

82

Business

289

107

(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
	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 composite unit	Number of composite units to break even.		Units sales at the break-even point
	Easy (form 1040EZ)
	Moderate (form 1040)
	Business