DeMont Services provides primarily two lines of service accounting and tax Accounting related services represent 60 of its revenue and provide a contribution margin ratio of 30 Tax services represent 40 of its revenue and provide a 40 contribution margin ratio The company 's fixed costs are $4,250,...

Weighted average contribution margin 60 ...

DeMont Services provides primarily two lines of service: accounting and tax. Accounting-related services represent 60% of its

Question:

DeMont Services provides primarily two lines of service: accounting and tax. Accounting-related services represent 60% of its revenue and provide a ratio of 30%. Tax services represent 40% of its revenue and provide a 40% ratio. The company's fixed costs are $4,250,000. Calculate the revenue from each type of service that the company must achieve to break even.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...