1. The data that follow relate to an accounting firm that processes tax returns. The data are for the month of April.

Direct labor	$6,400
Overhead	$3,200
Number of tax returns processed	800

The firm has found a way to reduce overhead costs by 30%. Based on the given information, how would this affect the profit per tax return for April? (Round to two decimal places.)

a.$1.20 per tax return increase in profitability

b.$2.30 per tax return increase in profitability

c.$5.50 per tax return decrease in profitability

d.$3.20 per tax return decrease in profitability