the senior leadership (who manage the firm, but do not actively
consult), the managers and staff are billed to clients on an hourly
basis. The workload varies quite a bit from month to month
requiring careful planning.
Managers are billed to clients at a rate of $910 per hour and
staff at a rate of $455 per hour. Managers are paid $235
per hour worked (including nonbillable time) and staff are paid
$130 per hour. The current plan calls for managers to bill 1,210
hours in May and 760 hours in June. Staff are expected to bill
6,420 hours in May and 4,520 hours in June. Managers will work a
total of 2,420 hours in both months and staff will work a total of
9,620 hours in both months.
Other monthly costs (all fixed) are $550,500 SG&A, $225,500
in depreciation, and $350,500 in marketing.
Required:
Prepare a budgeted income statement for Executive Solutions for
May and June (separately).
- Executive Solutions Is A Strategy Consulting Firm Other Than The Senior Leadership Who Manage The Firm But Do Not Act 1 (11.47 KiB) Viewed 35 times