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....




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. All jobs 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.


StandardMultiformComplexBilling rate$50$125$250Average variable costs(30)(75)(150)Average contribution margin$20$50$100Number of returns prepared1,750500250



Required


(a.) Determine Joe's break-even dollar sales volume.


Product


Weighted


Selling Price


Weighted


Contribution


Margin


StandardAnswer


Answer


MultiformAnswer


Answer


ComplexAnswer


Answer


TotalAnswer


Answer


Contribution margin ratio:Answer


Break-even sales volume:Answer


(b.) Determine Joe's margin of safety in sales dollars.


$Answer




Dec 02, 2021
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