You are the managerial accountant at Reliable Company. You have been assigned to support the marketing department and manage its master budget. The marketing department is responsible for the following:

• Managing the firm's marketing
• Hiring subcontractors
• Selling the consulting expertise to smaller outside firms

The department's expenses are as follows:

• Salaries and benefits of $48,000/month
• Web site operations of $21,000/ month
• Online advertising expenses of $15,000/month
• Miscellaneous expenses of $3,500/month

The sales forecast for its consulting services are as follows:

• April: $190,000
• May: $200,000
• June: $205,000

The department pays a sales commission of 5%, and this is paid in the following month. Subcontractor expenses are estimated at 45% of sales and are paid the month after they are billed. Consulting fees are collected 20% in the month of sale, 70% in the following month, and 10% in the second month following sale.