Prepare an analysis of the revenue change, separating the volume effect (increase in number of consultants) from the productivity effect (billing percentage) Exhibit 2 Budget and Actual Income Statement: Quarter 2 2000 Actual Budget Revenues $3,264,000 $3,231,900 Less: Consultants' salaries and fringes $2,029,050 $1,748,250 Operating expenses 938,560 877,300 Total expenses $2,967,610 $2,625,550 Operating profit $ 296,390 $ 606,350 Profit % 9.1% 18.8% Operating Statistics Number of consultants (FTE) 113 105 Hours supplied 50,850 47,250 Hours billed 39,000 35,910 Average billing rate $83.69 $90.00

Prepare an analysis of the revenue change, separating the volume effect (increase in number of consultants) from the productivity effect (billing percentage)

Exhibit 2Budget and Actual Income Statement: Quarter 2 2000

Actual	Budget
Revenues	$3,264,000	$3,231,900
Less: Consultants' salaries and fringes	$2,029,050	$1,748,250
Operating expenses	938,560	877,300
Total expenses	$2,967,610	$2,625,550
Operating profit	$ 296,390	$ 606,350
Profit %	9.1%	18.8%
Operating Statistics Number of consultants (FTE)	113	105
Hours supplied	50,850	47,250
Hours billed	39,000	35,910
Average billing rate $83.69 $90.00