Mounts CPA Firm Prepares Approximately 1,200 Individual Tax Returns Each

Multiple Choice

Mounts CPA firm prepares approximately 1,200 individual tax returns each year.Since a majority of the cost of preparing tax returns results from the salary of the tax preparers and reviewers, Mounts charges customers a markup on labor rates.The highest paid preparers earn $30 per hour and are CPAs with several years' experience.Mounts charges its customers $45 per hour.If Mounts charges the same markup percentage to all clients, what price will Mounts charge for a less-experienced preparer who earns only $20 per hour?

A) $25
B) $30
C) $35
D) $45