Reference no: EM131785767

Assignment

William Chang, CPA, is a sole proprietor who does corporate, partnership, and individual tax returns.  He is constrained by time, which is his only cost.  On average, the revenues and time required for different types of tax returns are as follows:

TYPE OF RETURN       TIME IN HOURS        REVENUE PER TAX RETURN

Corporate                             20                                         $2000

Partnership                           10                                          $1200

Individual                                5                                           $400

William has only 2000 hours that he can work in order to complete the tax returns which can be broken down into the following categories:

Corporate            50 returns

Partnership          30 returns

Individual           200 returns 

Given the time in hours necessary to prepare the returns as a constraint, what product mix should William Chang adopt?