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 $960 per hour and staff at a rate of $480 per hour. Managers are paid $285 per hour worked (including nonbillable time) and staff are paid $155 per hour. The current plan calls for managers to bill 1,260 hours in May and 810 hours in June. Staff are expected to bill 6,520 hours in May and 4,620 hours in June. Managers will work a total of 2,520 hours in both months and staff will work a total of 9,720 hours in both months. Other monthly costs (all fixed) are $553,000 SG&A, $228,000 in depreciation, and $353,000 in marketing. Required: Prepare a budgeted income statement for Executive Solutions for May and June (separately). EXECUTIVE SOLUTIONS Budgeted Income Statement Ma June Revenues Managers Staff Total revenue Expenses: Manager compensation Staff compensation Total compensation SG&A Depreciation Marketing Total expenses Income (Loss)