Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified pricing model with two alternatives for
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Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified pricing model with two alternatives for taxpayers: Standard Deduction (Standard) or Itemized Deductions (Itemized). Price and variable costs for the two services are listed below. Standard Itemized Sales price (per return) $ 160.00 $ 470.00 Variable costs (per return) 120.00 250.00 The annual fixed costs at Grixdale are $455,000. Based on experience, the owner estimates that Standard Deduction returns represent 25 percent of the the firm's business.
Required: How many Standard Deduction and Itemized Deduction returns must be filed annually to break even?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: