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Production Input Mix. Mag Tax Service is a tax preparer firm employing season and credentialed tax preparer. The firm employs two tax preparers-- accountants (A)

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Production Input Mix. Mag Tax Service is a tax preparer firm employing season and credentialed tax preparer. The firm employs two tax preparers-- accountants (A) and bookkeepers (B)--certified public accountants or IRS enrolled agents. The accountant can process 0.38 tax returns per hour and the bookkeeper 0.27 tax returns per hour. On average, the accountants are paid $29.56 per hour and the bookkeepers $21.00 per hour. The average price paid for processing a tax return is $257.00 (PQ = MRQ) 1. Identify and interpret the marginal products (MP). MPA= Interpretation of MPA: MPB = Interpretation of MPB: 2. Compute and interpret the marginal revenue products (MRP). Round MRP to two decimal places. Note: This is not a comparison to the input price. You are to interpret the marginal revenue products. MRPA= Interpretation of MRPA: MRPB = Interpretation of MRPB: 3. Using the output interpretation , does the company employ an optimal least-cost input mix between accountants and bookkeepers? If yes, why or if not, why not! To answer this question, you need to compute, compare, and interpret MP;/P; ratios for each input. Round ratios to FOUR decimal places. MPA/PA MPB/PB Your Decision and why or why not: Interpretation of Ratios: DO NOT FORGET TO INTERPRET THE RATIOS 4. Based on the data presented, select a recommendation for the least-cost input mix. Record your answer by letter, e.g., 4. F. An optimal input mix between A and B, management should use less A and less B Suboptimal input mix between A and B, management should use more A or less B An optimal input mix between A and B, management should do not change the input mix Suboptimal input mix between A and B, management should use less A or more B Suboptimal input mix between A and B, management should use more A and more B

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