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Sell Block prepares three types of simple tax returns: individual, partnerships, and (small) corporations. The tax returns have the following characteristics. Individuals Partnerships Corporations Price charged per tax return $ 230 $ 1,200 $ 2,100 Variable cost per tax return (including wage paid to tax preparer) $ 190 $ 1,100 $ 1,930 Expected tax returns prepared per year 52,500 15,000 7,500 The total fixed costs per year for the company are $110,500. Required: a. What is the anticipated level of profits for the expected sales volumes
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