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Short-term Decisions - (15 pts) You are a consultant for a small accounting firm. The owner informs you, he has decided to only perform tax

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Short-term Decisions - (15 pts) You are a consultant for a small accounting firm. The owner informs you, he has decided to only perform tax preparation. He says that by eliminating the other services his company currently provides, he can concentrate his resources on tax preparation (which he believes is 75% of his business) After some research, you collect the following information, concerning the financial breakdown of the company's services: Taxes Bookkeeping. Consulting Sales revenue $127,500 $60,000 $32,500 Variable costs 46,000 7.500 _8,000 Contribution margin $81,500 $52,500 $ 24,500 Direct fixed costs 19,500 6,000 13,500 Allocated fixed costs 3.750 21.000 11.250 Profit (loss) $58.250 S. 25.500 S (250 Perform the appropriate calculations, and then compose an email to the owner explaining your suggested course of action (make sure to include the calculations with your email). Using your calculation give at least two quantitative reasons why this is/isn't the right decision. Also, explain why qualitative factors may also influence the decision and offer at least three specific qualitative factors applicable in this decision

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