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please answer C Clark & Elliott LLC (CSE) is budgeting for neat year, Much of the work that CEE does refates to repeat business Teuarterfyand

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Clark \& Elliott LLC (CSE) is budgeting for neat year, Much of the work that CEE does refates to repeat business Teuarterfyand annual tax (Glines and annial audits), but the partners also work hard to gain new business. The firm employs 40 professional accountants - all salaried-and four administrative staff members-all hourly. The following chart shows the number of accountants by role, along with targeted billable hours and billable rates for each level. Target Billable Hours per Person are annual amounts, as the IFC are given arnually The administrative statf costs the firm, on awerage, $20 per billable hour. Additionally, mikcellaneous supglies unually run $5 per thiltable hour: (b) profeswonals hit their tarest biliahle hours? Operating income In addition to the budget for income prepared in (b), the partners also want an even more optimistic estimate. They have been working very hard to secure additional business for the firm, and they believe they have achieved their goal. If this new client work comes through, it means the partners may not need to spend as much time "building business" next year as they thought. How much operating income will the firm generate if all accountants except the partners hit their target billable hours for next year. and the partners exceed their estimate by 20% ? Operating income 5

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