PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax. Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30 Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio. The company’s fixed costs are $4,250,000. Required Compute the weighted average contribution margin ratio. Compute the total revenue required to break even. Calculate the revenue from each type of service that the company must achieve to break even
PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax. Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30 Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio. The company’s fixed costs are $4,250,000. Required Compute the weighted average contribution margin ratio. Compute the total revenue required to break even. Calculate the revenue from each type of service that the company must achieve to break even
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
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PDF Advisory and Tax Services provides primarily two lines of service: Advisory and Tax.
Advisory services represent 0.60 of its revenue and provide a contribution margin ratio of 0.30
Tax services represent 0.40 of its revenue and provide a 0.40 contribution margin ratio.
The company’s fixed costs are $4,250,000.
Required
- Compute the weighted average contribution margin ratio.
- Compute the total revenue required to break even.
- Calculate the revenue from each type of service that the company must achieve to break even.
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