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 $1,100 per hour and staff at a rate of $550 per hour. Managers are paid $425 per hour worked (including nonbillable time) and staff are paid $225 per hour. The current plan calls for managers to bill 1,400 hours in May and 950 hours in June. Staff are expected to bill 6,800 hours in May and 4,900 hours in June. Managers will work a total of 2,800 hours in both months and staff will work a total of 10,000 hours in both months. Other monthly costs (all fixed) are $560,000 SG&A, $235,000 in depreciation, and $360,000 in marketing. Required: Prepare a budgeted income statement for Executive Solutions for May and June (separately). Required: Prepare a budgeted income statement for Executive Solutions for May and June (separately). EXECUTIVE SOLUTIONS Budgeted Income Statement May June Revenues: Managers Staff Total revenue Expenses: Manager compensation Staff compensation Total compensation SG&A Depreciation Marketing Total expenses Income (Loss)