PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax. Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30 Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio. The company’s fixed costs are $4,250,000. Required Compute the weighted average contribution margin ratio. Compute the total revenue required to break even. Calculate the revenue from each type of service that the company must achieve to break even
PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax. Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30 Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio. The company’s fixed costs are $4,250,000. Required Compute the weighted average contribution margin ratio. Compute the total revenue required to break even. Calculate the revenue from each type of service that the company must achieve to break even
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter21: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 4PB: Salespersons report and analysis Pachec Inc. employs seven salespersons to sell and distribute its...
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PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax.
Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30
Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio.
The company’s fixed costs are $4,250,000.
Required
- Compute the weighted average contribution margin ratio.
- Compute the total revenue required to break even.
- Calculate the revenue from each type of service that the company must achieve to break even.
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