Joe's Tax Service provides professional accounting and tax services. All tax return services are classified into...

  

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Joe's Tax Service provides professional accounting and tax services. All tax return services are classified into one of three categories: standard, multiform, and complex. Following is information for last year. Also, last year, the fixed cost of rent, utilities, and so forth were $70,000. Standard Multiform Complex $145 $270 Billing rate Average variable costs Average contribution margin Number of returns prepared 1,750 $70 (30) $40 (75) (150) $70 $120 500 250 Required (a.) Determine Joe's break-even dollar sales volume. (b.) Determine Joe's margin of safety in sales dollars. Joe's Tax Service provides professional accounting and tax services. All tax return services are classified into one of three categories: standard, multiform, and complex. Following is information for last year. Also, last year, the fixed cost of rent, utilities, and so forth were $70,000. Standard Multiform Complex $145 $270 Billing rate Average variable costs Average contribution margin Number of returns prepared 1,750 $70 (30) $40 (75) (150) $70 $120 500 250 Required (a.) Determine Joe's break-even dollar sales volume. (b.) Determine Joe's margin of safety in sales dollars.

Answer rating: 100% (QA)

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