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Mounts CPA firm prepares approximately 1,200 individual tax returns each year. Since a majority of ...

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Mounts CPA firm prepares approximately 1,200 individual tax returns each year. Since a majority of ...

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?

▸ $30

▸ $35

▸ $45

▸ $25

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Managerial Accounting

Edition: 4^th

Author: Davis

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