Question
Sell Block prepares three types of simple tax returns: Individual, partnerships, and (small) corporations. The tax returns have the following characteristics. Price charged per
Sell Block prepares three types of simple tax returns: Individual, partnerships, and (small) corporations. The tax returns have the following characteristics. Price charged per tax return Corporations $ 1,700 $ Individuals 150 Partnerships $ 800 Variable cost per tax return (including wage paid to tax preparer) $ 100 $ 700 $ 1,550 36,000 12,000 12,000 Expected tax returns prepared per year a The total fixed costs per year for the company are $1,360,000. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point. c. Suppose the product sales mix changes so that for every ten tax returns prepared, six are for individuals, one is for a partnership, and three are for corporations. Now what is the break-even volume for Sell Block? Complete this question by entering your answers in the tabs below. Required A Required B Required C Assuming that the product mix is the same at the break even point, compute the break-even point. Break even point returns www.
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