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R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for 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 for three types of tax returns follow. Fixed costs total $60,800. Type of Return Easy Moderate Business Sales Mix Fee Charged $ 40 100 240 10% 20% 70% (1) Determine the weighted-average contribution margin. Weighted-average contribution margin 39,680 (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: 1 Fixed costs per unit $ Variable Cost per Return $ 20 60 140 1 Denominator: Weighted-average contribution margin per unit $ 62.00 (3) Determine the number of units of each product that will be sold at the break-even point. Easy units Moderate units Business units = II 11 = 11 Break Even Units Break even units 640 returns
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