A Large Accounting Firm Has Three Auditors

question 69

Essay

A large accounting firm has three auditors. Each can work up to 180 hours during the next month, during which time three projects must be completed. Project 1 takes 140 hours, Project 2 takes 150 hours, and Project 3 takes 170 hours. The amount per hour that can be billed for assigning each auditor to each project is given in the table below: Determine how to maximize total billings during the next month by formulating the company's problem as a transportation model.

---

Definitions:

Industry Concentration

A measure of the extent to which a small number of firms dominate total production, sales, or employment within an industry.

R&D

Research and Development, a business or government activity that focuses on the development of new products or the improvement of existing products.

Firm Sales

Firm sales refer to the total amount of revenue that a company generates from the sale of its goods or services within a specific time frame.

Oligopolists

Firms in a market structure dominated by a small number of large companies, having significant control over their industry's prices and policies.