TPG Tax & Accounting is a full-service CPA firm located in Apache Junction, Arizona. Assume...
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Accounting
TPG Tax & Accounting is a full-service CPA firm located in Apache Junction, Arizona. Assume
that tax return services are classified into one of three categories: standard, complex, and full-service
(includes end-of-year bookkeeping with tax return preparation). Assume that TPGs fixed costs (rent
utilities, wages, and so forth) totaled $180,000 last year. Additional information from the prior year
follows.
Prepare a profit-volume graph.
Standard Complex Full-Service Billing rate. ... Average variable costs. Average contribution margin. . $125.00 (45.00) $ 80.00 $250.00 (65.00) $185.00 $150.00 (50.00) $100.00 Number of returns prepared.. 1,000 200 800
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