The taxpayer Assistance Center (TAC) is a division of the IRS which provides free assistance to…


Question Description:

25

The taxpayer Assistance Center (TAC) is a division of the IRS which provides free assistance to… 2 answers below » The
taxpayer Assistance Center (TAC) is a division of the IRS which
provides free assistance to individuals to help them in the preparations
of their tax returns. The
number of individuals that receive assistance (q), is a function of the
number of professional accountants (A) and trained tax preparers (T)
employed in a given office. The
function relating the number of persons assisted in an office (q) is
related to the employment levels of accountants (A) and preparers (T) as
follows: Q=250A+100T+25AT Assume
a TAC office has an annual employment budget of $350,000 to spend on View complete question » The
taxpayer Assistance Center (TAC) is a division of the IRS which
provides free assistance to individuals to help them in the preparations
of their tax returns. The
number of individuals that receive assistance (q), is a function of the
number of professional accountants (A) and trained tax preparers (T)
employed in a given office. The
function relating the number of persons assisted in an office (q) is
related to the employment levels of accountants (A) and preparers (T) as
follows: Q=250A+100T+25AT Assume
a TAC office has an annual employment budget of $350,000 to spend on
accountants and tax preparers and the annual salary of an accountant is
$50,000 and the annual salary of a tax preparer is $25,000. A. A. Using the Lagrangian technique, what is the optimal combination of
accountants (A) and tax preparers (T), per office, if the objective or
goal of the office is to maximize the number of individuals assisted
(q). B. B. Under the annual budget of $350,000 what is the maximum number of individuals that can be assisted by a TAC office? C. At
the optimal use of accountants and tax preparers, how many (decimal
fractions OK) individuals can be assisted by a $1 increase in the
budget? How did you determine this? View less » May 22 2015 11:18 PM

Answer

25