Question

Question 1 of 5 View Policies Current Attempt in Progress -75 Will Jones, Sunland is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $660 annual fee plus $10 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 200 returns are filed? If 330 returns are filed? Ir 500 returns are filed? $ Total cost for 200 returns Total cost for 330 returns Total cost for 500 returns $ (b) What is the company's cost per return for the Mega Tax software if 200 returns are hled? If 330 returns are filed? 500 returns are filed? (Round answers to 2 decimal places, eg. 52.75.) $ Cost per unit (200) $ Cost per unit (330) $ Cost per unit (500) e Textbook and Media Submit Answer Attempts: 0 of 12 used Save for Later

Answer 1

Annual fee = $660

Variable cost per return = $10

a)

Total cost = Variable cost per return x Number of returns + Annual fee

Total cost for 200 returns = 10 x 200 + 660

= $2,660

Total cost for 330 returns = 10 x 330 + 660

= $3,960

Total cost for 500 returns = 10 x 500 + 660

= $5,660

b)

Cost per unit = Total cost/Number of returns

Cost per unit (200) = 2,660/200

= $13.30

Cost per unit (330) = 3,960/330

= $12

Cost per unit (500) = 5,660/500

= $11.32

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