Davis & Elliott LLC (D&E) is budgeting for next year. Much of the work that D&E does relates to repeat business (quarterly and annual tax filings and annual audits), but the partners also work hard to gain new business. The firm employs 40 professional accountants-all salaried-and four administrative staff members-all hourly. The following chart shows the number of accountants by role, along with targeted billable hours and billable rates for each level. Target Billable Hours per Person are annual amounts, as the TFC are given annually. Number of Accountants Target Billable Hours per Person Billable Rate/Hour Partner 5 1,100 $165 Manager 7 1,100 135 Senior 8 1,700 110 Staff 20 1,700 80 The administrative staff costs the firm, on average, $20 per billable hour. Additionally, miscellaneous supplies usually run $5 per billable hour. (b) Assume D&E's fixed costs are budgeted at $3 million for next year. How much will the firm generate in operating income if all professionals hit their target billable hours? Operating income $ eTextbook and Media Save for Later (c) The parts of this question must be completed in order. This part will be available when you complete the part above. Attempts: 0 of 3 used Submit Answer