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:

Contribution Margin

The amount by which the sale of a product or service exceeds its production and selling costs, indicating how much contributes to covering fixed costs and generating profit.

Variable Cost

A cost that varies with the level of output or production, such as materials and labor costs.

Sales Revenue

The total amount of money generated from the sale of goods and services before any costs or expenses are subtracted.

Dominant Inheritance

A pattern of inheritance in which an affected individual has one copy of a mutated gene that dominates the normal gene, leading to the manifestation of a trait or disorder.