Executive Solutions is a strategy consulting firm. Other than 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 $930 per hour and staff at a rate of $465 per hour. Managers are paid $255 per hour worked (including nonbillable time) and staff are paid $140 per hour. The current plan calls for managers to bill 1,230 hours in May and 780 hours in June. Staff are expected to bill 6,460 hours in May and 4,560 hours in June. Managers will work a total of 2,460 hours in both months and staff will work a total of 9,660 hours in both months.

Other monthly costs (all fixed) are $551,500 SG&A, $226,500 in depreciation, and $351,500 in marketing.

Required:

Prepare a budgeted income statement for Executive Solutions for May and June (separately).

answer; /// the above statement is (true); good luck

answer; enforce the rules;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know