Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
b
2
M
2
V
2
f
2
c
2
c
2
K
2
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
bklm1234 bklm1234
wrote...
Go to Answer
Posts: 150
Rep: 0 0
A year ago
Gabbard and Fink CPA firm leases tax software from BGG Tax Software Company to prepare federal and state income tax returns. The lease agreement calls for a base charge of $5,000 per year plus $100 per year for each state for which returns are prepared. In addition, Gabbard and Fink are charged $2 ($1 for federal and $1 for state) for each tax return prepared. All of their clients have federal and state returns prepared, with 60 percent in Arkansas and 40 percent in Oklahoma.

Required:

a.What is the firm's total annual cost for the software if a total 2,500 returns are
prepared?
b.What is the firm's cost per unit at a level of 2,500 returns?
c.What is the firm's cost per return if 2,000 are prepared?
d.Besides software lease cost, list five other costs that Gabbard and Fink must consider
when the company set the selling price to be charged to the clients.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 42 times
1 Reply
Replies
Answer verified by a subject expert
elisebarnettelisebarnett
wrote...
#1
Posts: 150
Rep: 1 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

bklm1234 Author
wrote...

A year ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
jodie1
wrote...

Yesterday
Correct Slight Smile TY
zsc999
wrote...

2 hours ago
Smart ... Thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  554 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 186
  
 253
  
 345
Your Opinion
Which country would you like to visit for its food?
Votes: 263
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?