Sell Block prepares three types of simple tax returns: individual, partnerships, and (small) corporations. The tax returns have the following characteristics:

The total fixed costs per year for the company are $3,690,000.

Required
a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the product mix is the same at the break-even point, compute the break-even point.
c. Suppose the product sales mix changes so that, for every ten tax returns prepared, six are for individuals, one is for a partnership, and three are for corporations. Now what is the breakeven volume for SellBlock?

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Individuals Partnerships Corporation:s Price charged per tax return - Variable cost per tax retum (including $200 ,000 $2,000 wage paid to tax preparer) Expected tax retums prepared per year $180 60,000 $900 4,000 $1,800 16,000