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Submitted R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow. R&R provides services in the ratio of 3:3:4 (easy, moderate, business). Fixed costs total $23,400 for the tax season. Fee Charged $ 48 123 273 Variable Cost per Return $ 29 Type of Return Easy (form 1040EZ) Moderate (form 1040) Business 74 99 (1) Determine the selling price per composite unit. Ratio Easy (form 1040EZ) 3 $ Moderate (form 1040) Business Fee Charged 48.00 Total per composite unit 144.00 369.00 123.00 273.00 1,092.00 1,605.00 $ (2) Determine the variable costs per composite unit. Ratio Variable cost per return Easy (form 1040EZ) 3 $ 29.00 Moderate (form 1040) 74.00 Business 99.00 Total per composite unit 87.00 $ 222.00 396.00 705.00 Contribution margin per composite unit Sales Less: Contribution margin Contribution margin 1,605.00 705.00 90.00 - (3) Determine the break-even point in composite units. Choose Choose Denominator: Numerator: Fixed costs per unit / Contribution margin per unit $ 23,400 / s 90.00 Bretok Even Units Break even units - 200.00 260.00 composite units per (4) Determine the number of units of each product that will be sold at the break-even point. Number Number of composite Units sales at the break-even composite units to break even. unit Easy form 1040EZ point

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