Lothrop Consulting Group is a small firm that offers services to two business segments: not$-$for$-$profits $($NFPs$)$ and Corporate clients. Lothrop's business model is to rely to a great extent on non$-$employee consultants $($called "advisors"$)$ who are paid on an hourly basis. Lothrop is planning to expand operations into international markets and is concerned that its reporting system might need improvement. The master budget income statement for the company's latest quarter follows $($in thousands$).$