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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 $81,200. Type of Return Easy Moderate Business Sales Mix Fee charged 20% $50 10% 190 70% 460 Variable Cost per Return $50 110 280 (1) Determine the weighted average contribution margin Contribution margin per return Total por unit Easy Moderate Business Salos mix 20% 10% YO Weighted average contribution margin (2) Determine the break even point in units using the weighted average contribution margin Numerator 1 Denominator: Fixed costs per un xed costs per unit Break Even Units Broak 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 Easy Moderate Business
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