Hello this is a question from my cost accounting exam, it would be very helpful if you can answer it, thanks!!!

7. Terrell and Associates, CPA's provides two types of services: audit and tax. All company personnel can perform either service. In efforts to market its services, the company relies on radio and billboards for advertising. Information on the company's projected operations for the coming year follows: Audit Taxes Revenue per billable hour $35 $30 Variable cost of professional labor 25 20 Material cost per billable hour 2 3 Allocated fixed costs per year 100,000 200,000 Projected billable hours 14,000 10,000 a. What is the company's projected profit or loss)? 10 pts b. If S1 spent on advertising could increase either audit services billable time by 1 hour or tax services billable time by 1 hour, on which service should the advertising dollar be spent? 4 pts