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 $1,070 per hour and staff at a rate of $535 per hour. Managers are paid $395 per hour worked (including nonbillable time) and staff are paid $210 per hour. The current plan calls for managers to bill 1,370 hours in May and 920 hours in June. Staff are expected to bill 6,740 hours in May and 4,840 hours in June. Managers will work a total of 2,740 hours in both months and staff will work a total of 9,940 hours in both months. Other monthly costs (all fixed) are $558,500 SG&A, $233,500 in depreciation, and $358,500 in marketing. 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)