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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 $18,000. Type of Return Easy Moderate Business Sales Mix 50% 30% 20% Fee Charged $ 50 125 275 Variable cost pen Return $ BO WS 100 (1) Determine the weighted average contribution margin. Sales mix Contribution margin per return Total per unit Easy 50% Moderate 30% Business 20% Weighted average contribution margin (2) Determine the break-even point in units using the weighted average contribution margin. Numerator: Denominator: Break Even Units Variable cost per unit Weighted average contribution margin per unit Break even units 0 (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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