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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 4:4:2 (easy, moderate, business). Fixed costs total $16,470 for the tax season. Type of Return Easy (form 1848EZ) Moderate (form 1840) Business Fee Charged $ 46 121 271 Variable Cost per Return $ 28 73 98 Fee Charged Total per composite unit (1) Determine the selling price per composite unit. Ratio Easy (form 1040EZ) Moderate (form 1040) 4 $ 40.00 4 Business 2 (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 margin per composite unit S 0.00 0.00 Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: = Break Even Units Break even units Units sales at the break-even point (4) Determine the number of units of each product that will be sold at the break-even point. Number per Number of composite units to composite unit break even Easy (form 1040EZ) Moderate (form 1040) Business
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