Budgeted Income Statement of Quality Conveyancing Services Inc. for the Year Ended December 31, 2019. Quality Conveyancing Services Inc.Budgeted Income Statement For the Year Ended December 31, 2019 Fees revenue$270,000 Variable expensesLand titles and insurance(75,000) Contribution margin$195,000 Fixed expensesSalaries$108,000 Rent36,000 Office supplies18,000 Depreciation10,000 Interest3,000 $(175,000) Income before income taxes20,000 Income tax expense(4,000) Net income$16,000 This income statement provides little useful information about the relative costs and profits associated with its two client types - law firms and private individuals. Better information would help Wanda determine the best mix of client types for the firm. To do this, forecast revenue by client type could be calculated. This amounts to $180,0001 for law firms and $90,0002 for private individuals. To calculate contribution margin, variable costs could be assigned to client type. On this basis, Quality's only variable costs are external conveyancing fees of $300 per file. This amounts to $45,0003 annually for law firm files and $30,0004 for private individual's files.