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Hubert tax service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow. Hubert provides services in the ratio of 4:4:2 (easy, moderate, business). Fixed costs total $20,000 for the tax season. Use this information to determine the 1) selling price per composite unit, 2) variable costs per composite unit, 3) break-even point in composite units, and 4) number of units of each product that will be sold at the break-even point. Round answer for part 3 to two decimals.
Type of Return Fee Charged Variable Cost per Return
Easy (form 1040EZ)............................$50 $30
Moderate (form 1040)..........................$125 $75
Business............................................$275 $100
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