P9.8 Profit Maximization. Creative Accountants, Ltd., is a small San Francisco-based accounting partnership specializing in the preparation of individual (7) and corporate (C) income tax returns. Prevailing prices in the local market are $125 for individual tax return preparation and

$250 for corporate tax return preparation. Five accountants run the firm and are assisted by four bookkeepers and four secretaries, all of whom work a typical 40-hour workweek. The firm must decide how to target its promotional efforts to best use its resources during the coming tax preparation season. Based on previous experience, the firm expects that an average of 1 hour of accountant time will be required for each individual return prepared. Corporate return preparation will require an average of 2 accountant hours and 2 bookkeeper hours. One hour of secretarial time will also be required for typing each individual or corporate return. In addition, variable computer and other processing costs are expected to average $25 per individual return and $100 per corporate return.