Bramble Tax Services provides primarily two lines of service: accounting compilation and tax return preparation. Accounting compilation services represent 60% of its revenue and provide a contribution margin ratio of 30%. Tax return preparation services represent 40% of its revenue and provide a 40% contribution margin ratio. The company's fixed costs are $3,855,600. (a) Your answer has been saved. See score details after the due date. Calculate the revenue from each type of service that the company must achieve to break even Accounting $ Tax (b) Tax $ $ Revenue 6804000 4536000 The company has a desired net income of $1.428,000. What amount of revenue would Bramble earn from tax return preparation services if it achieves this goal with the current sales mix? 4 Attempts: 1 of 1 used
Bramble Tax Services provides primarily two lines of service: accounting compilation and tax return preparation. Accounting compilation services represent 60% of its revenue and provide a contribution margin ratio of 30%. Tax return preparation services represent 40% of its revenue and provide a 40% contribution margin ratio. The company's fixed costs are $3,855,600. (a) Your answer has been saved. See score details after the due date. Calculate the revenue from each type of service that the company must achieve to break even Accounting $ Tax (b) Tax $ $ Revenue 6804000 4536000 The company has a desired net income of $1.428,000. What amount of revenue would Bramble earn from tax return preparation services if it achieves this goal with the current sales mix? 4 Attempts: 1 of 1 used
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 34P: Mason, Durant, and Westbrook (MDW) is a tax services firm. The firm is located in Oklahoma City and...
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