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Sarasota Tax Services provides primarily two lines of service: accounting compilation and tax return preparation. Accounting compilation services represent 80% of its revenue and
Sarasota Tax Services provides primarily two lines of service: accounting compilation and tax return preparation. Accounting compilation services represent 80% of its revenue and provide a contribution margin ratio of 30%. Tax return preparation services represent 40% of its revenue and provide a 40% contribution margin ratio. The company's fixed costs are $4,957,200. (a) Your answer is incorrect. Calculate the revenue from each type of service that the company must achieve to break even. Accounting $ Tax $ Revenue
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