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Multiple Product Break-Even Analysis Joe's Tax Service prepares tax returns for low-to middle-income taxpayers. Its service...

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 $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.

Round contribution margin to three decimal places.

Round break-even sales volume to the nearest dollar.

Product

Weighted

Selling Price

Weighted

Contribution

Margin
Standard $Answer $Answer
Multiform Answer Answer
Complex Answer Answer
Total $ Answer $ Answer
Contribution margin ratio: Answer
Break-even sales volume: $Answer

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

Round answer to the nearest dollar.
$Answer

Solutions

Expert Solution

ekkarill92 answered 3 years ago
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