Question: Multiple Product Break-Even Analysis Joe's Tax Service provides professional accounting and tax services. All tax return services are classified into one of three categories:

Multiple Product Break-Even Analysis Joe's Tax Service provides professional accounting and tax

Multiple Product Break-Even Analysis 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 $55,000. Standard Multiform Complex Billing rate $55 $130 $255 Average variable costs (30) (75) (150) Average contribution margin $25 $55 $105 Number of returns prepared 1,750 500 250 Required (a.) Determine Joe'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. Weighted Contribution Product Weighted Billing Rate Margin Standard $ 0 x $ 0 x Multiform 0 x 0 x Complex 0 % 0 x Total $ 0 x $ 0 x Contribution margin ratio: 0 x Break-even sales volume: 127,021 (b.) Determine Joe's margin of safety in sales dollars. Hint: Use weighted average billing rate. Round answer to the nearest dollar. $ 0 x

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