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 $950 per hour and staff at a rate of $475 per hour. Managers are paid $275 per hour worked (including nonbillable time) and staff are paid $150 per hour. The current plan calls for managers to bill 1,250 hours in May and 800 hours in June. Staff are expected to bill 6,500 hours in May and 4,600 hours in June. Managers will work a total of 2,500 hours in both months and staff will work a total of 9,700 hours in both months. Other monthly costs (all fixed) are $552,500 SG&A, $227,500 in depreciation, and $352,500 in marketing. Required: Prepare a budgeted income statement for Executive Solutions for May and June (separately). June EXECUTIVE SOLUTIONS Budgeted Income Statement May Revenues: Managers Staff Total revenue Expenses Manager compensation Staff compensation Total compensation SG&A Depreciation Marketing Total expenses Income (Loss)