Corporate Consulting Services operates a flexible budgeting system. The following information was obtained to produce the draft budget for the next budget period:

• The average charge-out rate of the company's consultants is expected to be 100 per hour. However, this rate will increase by 10% if the company's consultancy work exceeds 18,000 consultancy hours since the company will have to employ free-lance consultants to undertake additional work.
• Travel and subsistence expenses are expected to average 10 per chargeable consulting hour.
• The average annual salary of the 12 consultants employed by the company is 60,000 per annum. The consultants, who are employed on annual fixed contracts, provide a maximum of 1,500 hours per annum.
• Free-lance consultants are paid 55 per hour.

The following analysis of the office expenses was obtained for the last three years:

14,000

Hours

16,000

Hours

17,000

Hours

OfficeExpenses

720,000

750,000

780,000

Flexible budget template:

CCS: Flexible Budget

17,000

18,000

19,000

Sales revenue (fee income)

Consultants salaries

Freelance consultants fees

Travel and subsistence

Office expenses: Fixed

Office expenses: Variable

Profit / (loss)

requited to create budget statement for Corporate Consulting Services using the above template