Profit variance analysis in service organization. Market Research Inc. is a marketing consulting firm that earns revenues by billing clients for hours worked. Last year, Market Research Incs billable hours were up 10 percent from expected levels, but as the following data show, profits were lower than anticipated.

Prepare a profit variance analysis for the company based on the below information.

	Actual Results	Master Budget
Billable hours	22,000 hours	20,000 hours
Revenue	2,200,000	2,000,000
Professional Salaries (all variable)	1,350,000	1,100,000
Other variable costs (supplies, etc)	250,000	200,000
General Administratve (all fixed)	400,000	400,000
Corporate Client Profit	200,000	300,000