Refer to the AccuTax Incorporated exhibit One of the partners is planning to retire at the end of the year. May Higgins, the sole

remaining partner, plans to add a manager at an annual salary of $$90,360.$ She expects the manager to work, on average, $45$ hours a

week for $45$ weeks per year. She plans to change the required staff time for each hour spent to complete a tax return to the following:

The manager is salaried and earns no overtime pay. Senior consultants are salaried but receive time and a half for any overtime

worked. The firm plans to keep all the senior consultants and adjust the number of consultants as needed including employing part$-$

time consultants, who also are paid on an hourly basis. Higgins has also decided to have five supporting staff at $$46,000$ each. All

other operating data remain unchanged. The manager will share $12\%$ of any profit over $$530,000$ before bonus.

Required:

What are the budgeted total cost for overtime hours worked by senior consultants?

How many full$-$time consultants should be budgeted?

Determine the manager's total compensation and total pretax operating income for the firm, assuming that the revenues from

preparing tax returns remain unchanged.

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What are the budgeted total cost for overtime hours worked by senior consultants?