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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 Tollow.

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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 Tollow. Fixed costs total $51.520 Type of Return Easy Moderate Business Sales Mix Fee charged 30% $ 70 10% 170 60% Variable cost per Return $ 40 1ee 250 410 Total per unit (1) Determine the weighted average contribution margin. Sales mix Contribution margin per return Easy 30% Moderate 10% Business 60% Weighted average contribution margin (2) Determine the break-even point in units using the weighted average contribution margin. Numerator: 1 Denominator: Break Even Units 7 Break even units (3) Determine the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even Units sales at the break even point 5.00 Easy Moderate Business 5.00 5.00 $ 140 40 $ 180 Grand Garden is a hotel with 180 suites. Its regular suite price is $250 per night per suite. The hotel's total cost per night is $180 per suite and consists of the following variable cost Fixed cost Total cost per night per suite The hotel manager receives an offer to hold the local Bikers Club meeting at the hotel in March, which is the hotel's slow season with a low occupancy rate per night. The Bikers' Club would reserve 160 suites for one night of the hotel accepts a price of $148 per night (a) What is the contribution margin from this special offer? (b) Should the Bikers Club offer be accepted or rejected? Contribution margin from Bikers' Club special offer: Revenues from special offer Variable costs Should the Bikers Club offer be accepted or rejected

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