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# The table above gives the prices for tax returns prepared by each of t

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Re: The table above gives the prices for tax returns prepared by each of t [#permalink]
Hi All,

Although the prompt does not state it, we're meant to assume a constant rate for all activities (meaning that increasing one's work time by 50% leads to an equivalent 50% increase in output). Since each worker is increasing his/her work time from 8 hours to 12 hours (which is an increase of 50%), then we're meant to assume that the number of tax returns prepared will also increase by 50%. At this point, we can do the math in a couple of different ways - you can either calculate the difference now and then increase it by 50% or increase both results by 50% and then compare the difference. Thus the two workers would earn a total of...

Tax Preparer A: (24 tax returns)(\$75 each) = \$1800
Tax Preparer B: (18 tax returns)(\$90 each) = \$1620

The first preparer will make \$1800 - \$1620 = \$180 more than the second preparer.

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Re: The table above gives the prices for tax returns prepared by each of t [#permalink]
Nanobotstv wrote:
The table above gives the prices for tax returns prepared by each of two tax return preparers and the rates at which those preparers can complete tax return in an 8-hour workday. If both preparers decide to work 12 hours on a certain day, how much more gross income is made by tax preparer A than by tax preparer B?

a) \$120
b) \$180
c) \$240
d) \$360
e) \$540

per day rate A ; 16/8 ; 2
and charges for 12 hrs ; 2*12 * 75= 1800
for B ; 12/8 * 12 = 18
charges 12 hr s; 18 * 90 = 1620
difference ; 1800-1620; 180 \$
IMO B
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Re: The table above gives the prices for tax returns prepared by each of t [#permalink]
Nanobotstv wrote:
The table above gives the prices for tax returns prepared by each of two tax return preparers and the rates at which those preparers can complete tax return in an 8-hour workday. If both preparers decide to work 12 hours on a certain day, how much more gross income is made by tax preparer A than by tax preparer B?

a) \$120
b) \$180
c) \$240
d) \$360
e) \$540

Tax guy B does 3/4 of the work and charges 6/5 so his total income = (3/4)*(6/5) = 9/10 of tax guy A.

So (1/10)th of income of A will be extra.

Income of A in 12 hrs = 24*75

Extra income of A = 24*75/10 = \$180

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Re: The table above gives the prices for tax returns prepared by each of t [#permalink]
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Re: The table above gives the prices for tax returns prepared by each of t [#permalink]
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