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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 ratlo of 5:3:2 (easy, moderate, buslness). Flxed costs total $18,000 for the tax season. Variable Cost per Return Type of Return Easy (form 1848EZ) Moderate (form 1848) Business Fee Charged $ 58 125 275 $ 30 75 1e8 (1) Determine the selling price per composite unit. Ratio Fee Charged Total per composite unit Easy (form 1040EZ) Moderate (form 1040) Business 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 mar gin 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 unit Units sales at the break-even point break even. Easy (form 1040EZ) Moderate (form 1040) Business
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