E Menu QUESTION 4 Tries remaining: 1 Points out of 20.00 P Rlag question Multipl

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E Menu QUESTION 4 Tries remaining: 1 Points out of 20.00 P Rlag question Multiple Product Break-Even Analysis Joe's Tax Service prepares tax returns for low-to middle-income taxpayers. Its service operates January 2 through April 15 at a counter in a local grocery store. Alljobs 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 $50,000 Billing rate Average variable costs Average contribution margin Number of returns prepared Standard Multiform Complex $50 $125 $250 (75) (150) $50 $100 250 (30) $20 1,750 500 Required (a.) Determine Joe's break-even dollar sales volume. Weighted Contribution Weighted Selling Price Product Margin Standard Multiform F5 F6 F7 F8 F9 F10 F11 F12

Explanation / Answer

note:

calucation of weight in total returns:

now,

a.Joe's break even dollar sale volume:

b. margin of safety = actual sales - break even sales

=> (1750*50) + (125*500) + (250*250) - 125,000

=>212,500 - 125,000

=>$87,500.

Form number of forms weight Standard 1,750 (1750/2500)=>70% multiform 500 (500/2500)=>20% complex 250 (250/2500)=>10% Total 2,500

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