Preston Services offers ax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follows. Preston provides services in the ratio of 4:4:2 (easy, moderate, business). Fixed Costs total 20,000 for the tax season. Use this information to determine the following; 1) Selling price per composite unit 2) Variable Costs per compsite unit

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Preston Services offers ax and consulting services to individuals and small businesses.
Data for fees and costs of three types of tax returns follows.
Preston provides services in the ratio of 4:4:2 (easy, moderate, business).
Fixed Costs total 20,000 for the tax season.
Use this information to determine the following;
1) Selling price per composite unit
2) Variable Costs per compsite unit
3) Breakeven point in composite units
4) Number of units of each product that will be sold at the breakeven point
Type of Tax Return
Easy
Moderate
Business
Fee Charged
$50
$125
$275
Variable Cost per Return
$30
$75
$100
Transcribed Image Text:Preston Services offers ax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follows. Preston provides services in the ratio of 4:4:2 (easy, moderate, business). Fixed Costs total 20,000 for the tax season. Use this information to determine the following; 1) Selling price per composite unit 2) Variable Costs per compsite unit 3) Breakeven point in composite units 4) Number of units of each product that will be sold at the breakeven point Type of Tax Return Easy Moderate Business Fee Charged $50 $125 $275 Variable Cost per Return $30 $75 $100
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