Multiple Product Break$-$Even Analysis

TPG Tax & Accounting is a full$-$service CPA firm located in Apache Junction, Arizona. Assume that tax return services are classified into one of

three categories: standard, complex, and full$-$service $($includes end$-$of$-$year bookkeeping with tax return preparation$).$ Assume that TPG$\text{'}$s fixed

costs $($rent$,$ utilities, wages, and so forth$)$ totaled $$180,000$ last year. Additional information from the prior year follows.

Required

$($a$.)$ Using sales dollar analysis, determine TPG$\text{'}$s break$-$even dollar sales volume

Enter billing rates and contribution margins using all decimals, when needed.

Round contribution margin ratio to three decimal places.

Round break$-$even sales volume to the nearest dollar.

$($b$.)$ Determine TPG$\text{'}$s margin of safety in sales dollars. Hint: Use weighted average billing rate.