Sell, Inc., is a marketing consulting firm that earns revenues by billing clients for hours worked. Last year, Sell, Inc.'s 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 Sell,Inc.

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Billable Hours3 Revenue Production Costs: Actual Results 22,000 Hours 2,300,000 Master Budget 20,000 Hours 2,000,000 1,200,000 200,000 400,000 200.000 Professional Salaries (all variable) Other Variable Costs 1,550,000 250,000 400,000 100,000 (e.g., supplies, certain computer services) General Administrative (all fixed) Corporate Client Profit