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the number of units of each product that will be sold at the break-even point R&R Tax Service offers tax and consulting services to individuals

the number of units of each product that will be sold at the break-even point
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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 provides services in the ratio of 5:3.2 (easy, moderate, business). Fixed costs total $18,000 for the tax season Type of Return Easy (for 1040ER) Moderate (form 1040) Business Fee Charged $50 125 275 Variable cost per Return $ 30 75 100 (1) Determine the selling price per composite unit. Ratio Easy (form 1040EZ) 5 $ Moderate (form 1040) 3 Business 2 Foo Charged 50.000 Total per composite unit 250.00 $ 125.00 275.00 375.00 550.00 $ 1,175.00 (2) Determine the variable costs per composite unit. Ratio Variable cost per retum Easy (form 1040EZ) 5 $ 30.00 Moderate (form 1040) 75.00 Business 2 100.00 $ Total per composite unit 150.00 225.00 200.00 575.00 $ Contribution margin per composite unit $ 1.175.00 les 1.175.00 (2) Determine the variable costs per composite unit. Ratio Variable cost per retum Easy (form 1040EZ) 5 $ 30.00 Moderate (form 1040) 3 75.00 Business 2 100.00 Total per composite unit 150.00 $ 225.00 200.00 575.00 $ Contribution margin per composite unit Sales Less: Variable costs Contribution margin $ 1,175,00 575,00 600.00 $ (3) Determine the break-even point in composite units Choose Numerator: 1 Choose Denominator Totalfixed costs Contribution margin per 1 unit Break Even Units Break even units $ 18,000 $ 600.00 30.00 composite (4) Determine the number of units of each product that will be sold at the break-even point Number per Number of composito composite unit units to break even Units salos at the break-even point Easy (form 1040EZ) 5 60.00 Moderate (form 1040) 3 Business 2 60.00 80.00

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