Solve the Problem. -Formulate the Following Problem as a Linear Programming Problem (DO

question 20

Essay

Solve the problem.
-Formulate the following problem as a linear programming problem (DO NOT SOLVE):A small accounting firm
prepares tax returns for two types of customers: individuals and small businesses. Data is collected during an
interview. A computer system is used to produce the tax return. It takes 2.5 hours to enter data into the
computer for an individual tax return and 3 hours to enter data for a small business tax return. There is a
maximum of 40 hours per week for data entry. It takes 20 minutes for the computer to process an individual tax
return and 30 minutes to process a small business tax return. The computer is available for a maximum of 900
minutes per week. The accounting firm makes a profit of $125 on each individual tax return processed and a
profit of $210 on each small business tax return processed. How many of each type of tax return should the firm
schedule each week in order to maximize its profit? (Let x1 equal the number of individual tax returns and x2
the number of small business tax returns.)

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Definitions:

Accrued Salaries

Wages that have been earned by employees but have not yet been paid by the employer.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Unadjusted Trial Balance

A listing of all the accounts in the general ledger with their balances before any adjusting entries are made.

Adjusted Trial Balance

A trial balance prepared after adjusting entries have been made and posted to the ledger, used to verify the equality of debits and credits.