Cost behavior

Flaherty Accounting Services pays $$2,000$ per month for a tax preparation 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 following number of tax returns in March:

Note: Round amounts to two decimal places.

No$.$ of Tax ReturnsTotal CostCost per Tax Return$1\mathrm{.}200$Answer $1$Answer $22\mathrm{.}500$Answer $3$Answer $43\mathrm{.}800$Answer $5$Answer $6$

b$.$ 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 prepared, what tax return preparation fee should be charged?

$Answer $7$

c$.$ If the fee is charged in part b and $800$ returns are prepared, what is the margin in March?

$Answer $8$