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 $$92,280.$ 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:

Business Return Complex Individual Return Simple Individual Return

Partner $0\mathrm{.}4$ hour $0\mathrm{.}07$ hour $$

Manager $0\mathrm{.}1$ hour $0\mathrm{.}13$ hour $$

Senior consultant $0\mathrm{.}5$ hour $0\mathrm{.}40$ hour $0\mathrm{.}2$ hour

Consultant $0\mathrm{.}40$ hour $0\mathrm{.}8$ hour

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 $$57,000$ each. All other operating data remain unchanged. The manager will share $5\%$ of any profit over $$450,000$ before bonus.

Required:

$1.$ What are the budgeted total cost for overtime hours worked by senior consultants?

$2.$ How many full$-$time consultants should be budgeted?

$3.$ Determine the manager$$s total compensation and total pretax operating income for the firm, assuming that the revenues from preparing tax returns remain unchanged.