Five Customers Needing Their Tax Returns Prepared Must Be Assigned

question 10

Essay

Five customers needing their tax returns prepared must be assigned to five tax accountants. The estimated profits for all possible assignments are shown below. Only one accountant can be assigned to a customer, and all customers' tax returns must be prepared. What should the customer-accountant assignments be so that estimated total profit is maximized? What is the resulting total profit?
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Definitions:

Variable Expenses

Billing that adjusts based on the production volume or the number of sales, encompassing materials and labor expenses.

Business Segments

Distinct parts of a company that are engaged in different types of businesses, each of which may generate its own revenues and expenses.

Break-even Sales

The amount of revenue needed to be generated to cover all fixed and variable costs, indicating no profit or loss.

Wholesale Division

A division of a company that sells goods in large quantities to retailers, other distributors, or sometimes directly to consumers.