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Mounts CPA Firm Prepares Approximately 1,200 Individual Tax Returns Each

Question 136

Multiple Choice

Mounts CPA firm prepares approximately 1,200 individual tax returns each year.Since a majority of the cost of preparing tax returns results from the salary of the tax preparers and reviewers,Mounts charges customers a markup on labor rates.The highest paid preparers earn $30 per hour and are CPAs with several years' experience.Mounts charges its customers $45 per hour.If Mounts charges the same markup percentage to all clients,what price will Mounts charge for a less-experienced preparer who earns only $20 per hour?


A) $25
B) $30
C) $35
D) $45

Correct Answer:

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