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ZZZZ Best Accounting and Tax Services Pays $300 Per Month

Question 80

Essay

ZZZZ Best Accounting and Tax Services pays $300 per month for a tax software license. In addition, for each tax return prepared, the business incurs variable costs of $65 per return. The relevant range for ZZZZ Best Accounting and Tax Services is 100 - 400 tax returns per month. What is the total monthly cost and per unit cost if the business prepares
a. 150 returns?
b. 200 returns?
c. 300 returns?

Correct Answer:

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a. Total Monthly Cost = $10,050; Per Uni...

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