GV is a small accounting firm supporting wealthy individuals in their preparation ofannual income tax statements. Every December, GV sends out a short survey to itscustomers, asking for the information required for preparing the tax statements. Basedon 50 years of experience, GV categorizes its cases into the following two groups:• Group 1 (new customers): 20 percent of cases• Group 2 (repeat customers): 80 percent of casesThis year, there are 50 income tax statements arriving each week.In order to prepare the income tax statement, GV has three resources.The activities are carried out by the following three persons:• An administrative support person who processes every tax statement.• A senior accountant (who is also the owner) who processes only tax statements fornew customers.• A junior accountant who only processes tax statements for repeat customers.What is the total demand rate for each of the three resources?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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GV is a small accounting firm supporting wealthy individuals in their preparation of
annual income tax statements. Every December, GV sends out a short survey to its
customers, asking for the information required for preparing the tax statements. Based
on 50 years of experience, GV categorizes its cases into the following two groups:
• Group 1 (new customers): 20 percent of cases
• Group 2 (repeat customers): 80 percent of cases
This year, there are 50 income tax statements arriving each week.
In order to prepare the income tax statement, GV has three resources.
The activities are carried out by the following three persons:
• An administrative support person who processes every tax statement.
• A senior accountant (who is also the owner) who processes only tax statements for
new customers.
• A junior accountant who only processes tax statements for repeat customers.
What is the total demand rate for each of the three resources?

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