W&W Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns ispresented in the table below. Fixed costs total $36,000.Variable CostType of Return Sales Mix Fee Chargedper ReturnEasy50%$ 100$ 60Moderate30%250150Business20%550200The break-even point in units using the weighted-average contribution margin is:Multiple ChoiceOOO150 units.154 units.300 units.80 units. 50%$ 100$ 60EasyModerate30%250150Business20%550200The break-even point in units using the weighted-average contribution margin is:Multiple ChoiceOO150 units.154 units.300 units.80 units.40 units.

1. Both the Questions are same. 2. Break Even Point is the situation where a business earns no…

Answered: The break-even point in units using the…

Business

Accounting

The break-even point in units using the weighted-average contribution margin is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

W&W Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns is
presented in the table below. Fixed costs total $36,000.
Variable Cost
Type of Return Sales Mix Fee Charged
per Return
Easy
50%
$ 100
$ 60
Moderate
30%
250
150
Business
20%
550
200
The break-even point in units using the weighted-average contribution margin is:
Multiple Choice
O
O
O
150 units.
154 units.
300 units.
80 units.

50%
$ 100
$ 60
Easy
Moderate
30%
250
150
Business
20%
550
200
The break-even point in units using the weighted-average contribution margin is:
Multiple Choice
O
O
150 units.
154 units.
300 units.
80 units.
40 units.

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