You have been hired as the new cost accountant & operations manager for a new tax practice in Fayetteville, NC. You are responsible for several things that relate to a new tax office and ultimately the cost per tax return. You do not do any tax preparation work, so your salary is not in the product cost. Your salary is $48,000 per year, plus benefits, and you get $1.00 per tax return as an incentive. Based on the following information, construct a memo that gives CVP analysis, the variable costs and fixed costs for the firm. Your final goal is to develop a cost per tax return to charge to potential clients. This is a real-world application and can have positive and negative issues. Cost Data: $5.00 per tax return for paper and printing $5.00 per tax return for software $40.00 per tax return for direct labor. Mr. McKinzie has agreed to prepare all tax returns for $40.00 per hour and can do all tax returns in 1-hour. He is an independent contractor, thus no payroll taxes or benefits. The partner reviews the tax returns, and spends 10 minutes per return or $10.00 in review. This is QC for the process and not direct labor. The partner makes $5,000 per month as a draw. There are no taxes paid by the practice, as this is a partnership. His wife works as the receptionist and is paid $3,000 per month, as a draw. Your taxes, benefits and insurance are $3,000 per month for computation purposes. Firm costs: Rent- $1,500 per month Phone/Internet- $500 per month Copier- $500 per month Utilities- $500 per month Supplies- $1,000 per month Business Insurance- $250 per month Errors and Omission Insurance $250 per month. Depreciation on computer and fixtures is $500 per month. Miscellaneous firm costs are $500 per month and are not allocated to tax preparations. You expect to do 180 tax returns per month. Presentations- Memo format, 1- Firm Name, location, website, and any marketing ideas 2- Vision Statement 3- Core Competencies 4- Variable Costs- list and explain variable costs 5- Fixed Costs- List and explain fixed costs 6- Conclusion and any comments 7- Price per tax return to charge clients