2019 Actual Budget: DATA FOR TASK A Actual Results for the Year Ended 30 June 2019 Income Statement for T&K Accounting Services ation Bookkeeping Total Billable hours Chargeout rate per billable hour Professional labour rate per hour Professional labour hours 3,100 2,250 260 S 120 155 60 3,700 2,400 Revenue 806,000 270,000 1,076,000 Professional labour costs 717,500 573,500 144,000 Gross margin 232,500 126,000 358,500 Office staff wages 40,000 40,000 80,000 Rent & Utilities 22,500 22.500 45,000 Printing & stationary 7,500 7,500 15,000 IT Support 9,900 9,900 19,800 Advertising 5,500 5,500 11,000 Depreciation 5,600 5,600 11,200 Client entertainment costs 20,150 6,750 26,900 Total Support Costs 111,150 97,750 208,900 Net Profit before tax 121,350 149,600 28,250 Schedule 1: Master Budget 2020 BUDGET 2020 2020 Master Budget for T&K Acccounting Services Bookkeeping Advisory tion Total 3,410 3,000 Billable hours 2,363 8,773 689 Chargeout rate per billable hour 273 126 290 Professional labour rate per hour 160 62 200 421 4.092 10,527 2,835 3,600 Professional labour hours 930,930 297,675 870,000 2,098,605 Revenue 653,288 175,203 720,000 1,548,491 Professional labour costs 277,642 150,000 550,114 Gross margin 122.472 Office staff wages 53,333 53,333 53,333 160,000 19,500 19,500 19,500 58,500 Rent & Utilities Printing & stationary 7,000 7,000 7,000 21,000 13,200 13,200 13,200 39,600 IT Support Advertising 7,333 7,333 7,333 22,000 3,733 3,733 3,733 11,200 Depraciation 23,273 7,442 52,465 Cliant entertainment costs 21,750 Total Support costs 127,373 111.542 125.850 364,765 Budgeted Profit before tax 150,269 10,930 24,150 185,349 Schedale 2 Budget Scanaria Analynis Businem Advisory Dapartment Atgr i Ad y ae e une Advany Ne ninem Adviory Net Prof NChange fran Mester badget Mines Adisery Basicess 6dvisary usiness Adviory Labr ar Profesional Whet-- Suppet Co e Costs Sgpa cas Gre Margin ssble hours Spvue labour tot Froft able Casta 104 100) 20000 Original budge 3000 3500 720000 150000m 21750 24.150) LO%duction in bil lable hours 2700 78 000 a240 646.000) 100 104 100 1132 1yntionnbile heurs t08 100 23500 12 00) 127500 384880 4913 dctioninbliae here 65 sop t0400 36a sanw Using the data above (schedule 1 & 2), evaluate the decision to add the business advisory department. Justify your reasons using the calculations above, as well as any non-financial factors that may relevant. Add any relevant graphs using the data from 2019 Actuals and Schedule 1 to visually demonstrate the 2019 Actual Budget: DATA FOR TASK A Actual Results for the Year Ended 30 June 2019 Income Statement for T&K Accounting Services ation Bookkeeping Total Billable hours Chargeout rate per billable hour Professional labour rate per hour Professional labour hours 3,100 2,250 260 S 120 155 60 3,700 2,400 Revenue 806,000 270,000 1,076,000 Professional labour costs 717,500 573,500 144,000 Gross margin 232,500 126,000 358,500 Office staff wages 40,000 40,000 80,000 Rent & Utilities 22,500 22.500 45,000 Printing & stationary 7,500 7,500 15,000 IT Support 9,900 9,900 19,800 Advertising 5,500 5,500 11,000 Depreciation 5,600 5,600 11,200 Client entertainment costs 20,150 6,750 26,900 Total Support Costs 111,150 97,750 208,900 Net Profit before tax 121,350 149,600 28,250 Schedule 1: Master Budget 2020 BUDGET 2020 2020 Master Budget for T&K Acccounting Services Bookkeeping Advisory tion Total 3,410 3,000 Billable hours 2,363 8,773 689 Chargeout rate per billable hour 273 126 290 Professional labour rate per hour 160 62 200 421 4.092 10,527 2,835 3,600 Professional labour hours 930,930 297,675 870,000 2,098,605 Revenue 653,288 175,203 720,000 1,548,491 Professional labour costs 277,642 150,000 550,114 Gross margin 122.472 Office staff wages 53,333 53,333 53,333 160,000 19,500 19,500 19,500 58,500 Rent & Utilities Printing & stationary 7,000 7,000 7,000 21,000 13,200 13,200 13,200 39,600 IT Support Advertising 7,333 7,333 7,333 22,000 3,733 3,733 3,733 11,200 Depraciation 23,273 7,442 52,465 Cliant entertainment costs 21,750 Total Support costs 127,373 111.542 125.850 364,765 Budgeted Profit before tax 150,269 10,930 24,150 185,349 Schedale 2 Budget Scanaria Analynis Businem Advisory Dapartment Atgr i Ad y ae e une Advany Ne ninem Adviory Net Prof NChange fran Mester badget Mines Adisery Basicess 6dvisary usiness Adviory Labr ar Profesional Whet-- Suppet Co e Costs Sgpa cas Gre Margin ssble hours Spvue labour tot Froft able Casta 104 100) 20000 Original budge 3000 3500 720000 150000m 21750 24.150) LO%duction in bil lable hours 2700 78 000 a240 646.000) 100 104 100 1132 1yntionnbile heurs t08 100 23500 12 00) 127500 384880 4913 dctioninbliae here 65 sop t0400 36a sanw Using the data above (schedule 1 & 2), evaluate the decision to add the business advisory department. Justify your reasons using the calculations above, as well as any non-financial factors that may relevant. Add any relevant graphs using the data from 2019 Actuals and Schedule 1 to visually demonstrate the