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Whispering Winds Tax Services provides primarily two lines of service: accounting compilation and tax return preparation. Accounting compilation services represent 6 0 % of its

Whispering Winds Tax Services provides primarily two lines of service: accounting compilation and tax return preparation. Accounting compilation services represent 60% 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 $5,140,800.
(a)
Calculate the revenue from each type of service that the company must achieve to break even.
Revenue
Accounting $
Tax
$
Attempts: 0 of 1 used
(b)
Calculate the revenue from each type of service that the company must achieve to break even.
Revenue
Accounting $
Tax
Attempts: 1 of 1 used
(b)
The company has a desired net income of $1,904,000. What amount of revenue would Whispering Winds earn from tax return preparation services if it achieves this goal with the current sales mix?
Tax$
Attempts: 0 of 1 used
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