Thompson Tax Services (ITS) provides tax-planning services to its clients. The company billed 5,000 hours al $100 per hour for the year fist completed TTS, in planning next year's operations, is focusing on increasing the company's share or the market. It proposes to do that by fixing more tax specialists and by lowering its billing rate by 20 % for done by these now specialists TTS estimates that revenues generated from existing staff would increase in total by 40 % as a result of the new belling policy and that the additional specialists will provide billings of 3,000 hours (at the reduced rate) during the coming year