R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees...

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R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns follow. Fixed costs total $39,680. Variable Cost Type of Return Easy Sales Mix Fee Charged $ 40 100 per Return $ 20 10% Moderate 50% 60 Business 40% 240 140 (1) Determine the weighted-average contribution margin. Sales mix Contribution margin per return Total per unit Easy 10% Moderate 50% Business 40% Weighted-average contribution margin (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: Break Even Units = Break even units %3D (3) Determine the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. Units sales at the break-even point Easy Moderate Business R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns follow. Fixed costs total $39,680. Variable Cost Type of Return Easy Sales Mix Fee Charged $ 40 100 per Return $ 20 10% Moderate 50% 60 Business 40% 240 140 (1) Determine the weighted-average contribution margin. Sales mix Contribution margin per return Total per unit Easy 10% Moderate 50% Business 40% Weighted-average contribution margin (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: Break Even Units = Break even units %3D (3) Determine the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. Units sales at the break-even point Easy Moderate Business

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Part 1 Calculation of weighted Contribution margin Contribut... View the full answer