Question 12.12: Sophie Chang, CPA, is a sole proprietor. Sophie does corpora...
Sophie Chang, CPA, is a sole proprietor. Sophie does corporate, partnership, and individual tax returns. Her major constraint and only cost is her time. On average, the revenues and time required for different types of tax returns are:
Type of Tax Return | Time in Hours | Revenues/Tax Return |
Corporate | 20 | $2,000 |
Partnership | 10 | 1,200 |
Individual | 5 | 400 |
Which type of tax return should Sophie prepare, if she has plenty of opportunities to do all three types?
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