Question: Can you solve this for me please 02 BEE 10.56 Break-even: multiple products; contribution margin ratio laff Services offers three core accounting and bookkeeping services.

Can you solve this for me please

Can you solve this for me please 02 BEE 10.56 Break-even: multiple

02 BEE 10.56 Break-even: multiple products; contribution margin ratio laff Services offers three core accounting and bookkeeping services. After a cost behaviour the following profitability analysis has been prepared. Taff Services Profitability analysis for 12 months ending 31 December 2016 Bookkeeping Advisory Account management Fees $300 000 $160 000 $120 000 Total Less: Variable costs 180 000 96 000 72 000 Contribution margin 120 000 64 000 48 000 Direct fixed costs 25 000 35 000 18 000 232 MM Common fixed costs Utilities Other administration Total fixed costs Profit $ 87 0M The management of Taff Services estimates that the total fees mix (52%:28%:20%) is generally representative. Required a. Calculate the contribution margin ratios for each of the three areas of activity, and in total. b. Using the total contribution margin ratio, calculate the level of fees required to break even. c. Prepare an income statement at break-even level of fees as calculated in (b)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!