R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns follow. Fixed costs total $39,680. Variable Cost Type of Return Easy Moderate Sales Mix Fee Charged $ 40 100 per Return $ 20 10% 50% 40% 60 Business 240 140 (1) Determine the weighted-average contribution margin. Sales mix Contribution margin per return Total per unit Easy 10% Moderate 50% Business 40% |Weighted-average contribution margin (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: Break Even Units Break even units (3) Determine the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. Units sales at the break-even point Easy Moderate Business

R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns follow. Fixed costs total $39,680. Variable Cost Type of Return Easy Moderate Sales Mix Fee Charged $ 40 100 per Return $ 20 10% 50% 40% 60 Business 240 140 (1) Determine the weighted-average contribution margin. Sales mix Contribution margin per return Total per unit Easy 10% Moderate 50% Business 40% |Weighted-average contribution margin (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: Break Even Units Break even units (3) Determine the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. Units sales at the break-even point Easy Moderate Business

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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