Cost Accounting: Answer the textbook problem below.

LO$\mathrm{.}2($Cost behavior$)$ Flaherty Accounting Services pays $$2,000$ per month for a tax

software license. In addition, variable charges incurred average $$9$ for every tax return

the firm prepares.

a$.$ Determine the total cost and the cost per unit if the firm expects to prepare the fol$-$

lowing number of tax returns in March $2010$:

$200$

$500$

$800$

b$.$ Why does the cost per unit change in $(1),(2),$ and $(3)$ of part $($a$)?$

c$.$ The owner of Flaherty Accounting Services wants to earn a margin $($excluding any

other direct costs$)$ on tax returns of $$15,000$ during March. If $200$ returns are pre$-$

pared, what tax return preparation fee should be charged? If that fee is charged and

$800$ returns are prepared, what is the margin in March?