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tome I WINGS University Google Pilat Apple Bing Google Yahoo Rent Connect Hel 18

ID: 2392112 • Letter: T

Question

tome I WINGS University Google Pilat Apple Bing Google Yahoo Rent Connect Hel 18 Connect Assignment businesses. Data for fees and costs of three types of tax R&R; Tax Service offers tax and consulting services to individuals and small retuns follow.R&R; provides services in the ratio of 433 (easy, moderate, business) Fixed costs total $19,950 for the tax season Fee Variable Type of Return Easy (torm 10402 Moderate (form 1040) Fee Charged Total per composite unit Easy (form 1040 Moderate (form 1040) Easy norm 1040EZ Moderate (lorm 1040) Contribution margin C Prev 14 of 20 Next > 8 3 5 9

Explanation / Answer

(1) SP per composite unit :-

Ratio

Fee Charged

Total Per composite unit

Easy (Form 1040)

4

32

(32 * 4)/10

=12.8

Moderate (Form 1040)

3

107

(107 * 3)/10

=32.1

Business

3

257

(257 * 3)/10

=77.1

122

(2) VC per composite unit :-

Ratio

VC

Total Per composite unit

Easy (Form 1040)

4

21

(21 * 4)/10

=8.4

Moderate (Form 1040)

3

66

(66 * 3)/10

=19.8

Business

3

91

(91 * 3)/10

=27.3

55.5

Contribution margin per composite unit :-

SP

122

VC

55.5

Contribution margin per composite unit

66.5

(3) BEP (in composite units) :-

Choose Numenator

/

Choose Denomenator

=

Break Even units

Fixed cost

/

Contribution per comp unit

=

Break even units

19950

/

66.5

=

300 units

(4)

No per composite unit

No of composite units to breakeven

Unit Sales at BEP

Easy (Form 1040)

0.4

300

120

Moderate (Form 1040)

0.3

300

90

Business

0.3

300

90

Ratio

Fee Charged

Total Per composite unit

Easy (Form 1040)

4

32

(32 * 4)/10

=12.8

Moderate (Form 1040)

3

107

(107 * 3)/10

=32.1

Business

3

257

(257 * 3)/10

=77.1

122