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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 $44,100. Variable Cost Type of Return Sales Mix Fee Charged per Return Easy 50% $50 $ 30 Moderate 10% 120 70 Business 40% 290 170 (1) Determine the weighted-average contribution margin. Weighted-average contribution margin (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: = Break Even Units Total fixed costs 1 Weighted-average contribution margin per unit = (3) Determine the number of units of each product that will be sold at the break-even point. Easy units Moderate units Business units Break even units
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