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The table above gives the prices for tax returns prepared by each of two tax return preparers and the rates at which

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by M7MBA » Thu Aug 27, 2020 1:21 am

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The table above gives the prices for tax returns prepared by each of two tax return preparers and the rates at which those preparers can complete a tax return in an 8-hour workday. If both preparers decide to work 12 hours on a certain day, how much more gross income is made by tax preparer \(A\) than by tax preparer \(B?\)

a) $120
b) $180
c) $240
d) $360
e) $540

Answer: B

Source: Veritas Prep
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Source: — Problem Solving |

M7MBA wrote:
Thu Aug 27, 2020 1:21 am
The table above gives the prices for tax returns prepared by each of two tax return preparers and the rates at which those preparers can complete a tax return in an 8-hour workday. If both preparers decide to work 12 hours on a certain day, how much more gross income is made by tax preparer \(A\) than by tax preparer \(B?\)

a) $120
b) $180
c) $240
d) $360
e) $540

Answer: B

Source: Veritas Prep
Here the table,
Tax Preparer.PNG
Number of returns prepared by \(A/hr = 16/8 = 2\), number of returns in \(12 hrs = 12\cdot 2 = 24\)

Income from \(24 returns = 24\cdot \$75 = \$1800\)

Number of returns prepared by \(B/hr = 12/8 = 1.5\), number of returns in \(12 hrs = 12\cdot 1.5 = 18\)

Income from \(18 returns = 18\cdot \$90 = \$1620\)

Difference \(= \$1800-\$1620 = \$180\)

Therefore, B
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