Question

Question 1 --/1 View Policies Current Attempt in Progress Will Jones, Blossom is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $558 annual fee plus $11 per tax return for a license to use Mega Tax software. (a) What is the company's total annual cost for the Mega Tax software if 346 returns are filed? If 444 returns are filed? If 500 returns are filed? Total cost for 346 returns 0 Total cost for 444 returns 0 Total cost for 500 returns 0 (b) What is the company's cost per return for the Mega Tax software if 346 returns are filed? If 444 returns are filed? If 500 returns are filed? (Round answers to 2 decimal places, e.g. 52.75.) Cost per unit (346) A Cost per unit (444) A Cost per unit(500) A

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

Answer Parta) Total cost for 346 returns = fixed cost + (variable cost *346) = 558 +(346*11) = $ 4364 Total cost for 444 returns = fixed cost + (variable cost *444) = 558 +(444*11) = $ 5442 Total cost for 500 returns = fixed cost + (variable cost *500) = 558 +(500*11) = $ 6058 Thus the final answer is 3 Total Cost for 346 returns Total Cost for 444 returns Total Cost for 500 returns 4364 5442 6058

2 Part b) 3 Cost per unit (346) = cost of 346 units / 346 4 = 4364/346 5 = $ 12.61 7 Cost per unit (444) = cost of 444 units / 444 8 = 5442/444 9 = $ 12.26 1 Cost per unit (500) = cost of 500 units / 500 2 = 6058/500 3 = $ 12.12 5 Thus the final answer is 7 Cost per unit (346) 8 Cost per unit (444) 9 Cost per unit (500) 12.61 12.26 12.12