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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 5:3:2 (easy, moderate, business). Fixed costs total $18,000 for the tax season. Ten Type of Return Easy (form 1040EZ) Moderato form 1040) Business Charged $50 125 275 Variable Cont per Return $ 30 75 100 (1) Determine the selling price per composite unit Ratio Total per composite unit 5 $ Foo Charged 50.00 125.00 $ Easy (form 1040EZ) Moderate (for 1040) Business 250.00 3 375.00 275.00 550.00 1,175.00 2)Determine the variable costs per composite unit Ratio Variable cost per retum Easy (form 1040EZ 50 $ 30.00 Moderate (form 1040) 3 75,00 Business 2 100.00 Total per composite_unit 150.00 225.00 200.00 575.00 Contribution margin per composite unit $ 1.175.00 575.00 Contribution margin Ratio Total per composite unit 150.00 $ Easy (form 1040EZ) Moderate (form 1040) Business Variable cost per return 5 $ 30.00 3 75.00 21 100.00 225.00 200.00 575.00 Contribution margin per composite unit $ 1.175.00 575.00 Contribution margin (3) Determine the break-oven point in composite units. Choose Numerator: Choose Denominator: Break Even Units 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 composite unit units to break even Units sales at the breakfaven point Easy form 1040EZ) Moderate (form 1040) Business
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