Joe's Tax Service provides professional accounting and tax services. All tax return services are classified into one of three categories: standard, multiform, and complex. Following is information for last year. Also, last year, the fixed cost of rent, utilities, and so forth were $55,000.
StandardMultiformComplexBilling rate$55$130$255Average variable costs(30)(75)(150)Average contribution margin$25$55$105Number of returns prepared1,750500250
Required
(a.) Determine Joe's break-even dollar sales volume.
Enter billing rates and contribution margins using all decimals, when needed.
Round contribution margin ratio to three decimal places.
Round break-even sales volume to the nearest dollar.Which of the following methods of cost estimation utilizes judgment to determine the cost estimation model?