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An Accounting Firm Has 780 Hours of Staff Time and 272

Question 8

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An accounting firm has 780 hours of staff time and 272 hours of reviewing time available each week.The firm charges $1000 for an audit and $350 for a tax return.Each audit requires 60 hours of staff time and 16 hours of review time.Each tax return requires 10 hours of staff time and 4 hours of review time.What numbers of audits and tax returns will yield an optimal revenue? What is the optimal revenue? ​


A) 0 audits 13 tax returns
Optimal revenue: $16,800
B) 48 audits 5 tax returns
Optimal revenue: $21,800
C) 0 audits 65 tax returns
Optimal revenue: $10,000
D) 5 audits 48 tax returns
Optimal revenue: $21,800
E) 10 audits 10 tax returns
Optimal revenue: $11,750

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