Question: help please ! Walker & Elliott LLC (WEE) is budgeting for next year, Much of the work that WEE does relates to repeat business (quarterly
Walker \& Elliott LLC (WEE) is budgeting for next year, Much of the work that WEE does relates to repeat business (quarterly and amvual tax filings and annual audits), but the partners also work hard to gain newbusiness. The firm employs 40 protessional accountants-all salarled-and four administrative stalf members-all hourly. The following chart shows the number of accountants by role, along with targeted billable hours and billable rates for each level. Target Billable Hours per Person are annual amounts, as the TFC are given anmally. The administrative staff costs the firm on average. $30 per billable hour. Additionally, miscellanecus supplies usually run $5 per billable hour. (b) Assume WEE's fixed costs are budgeted at $2.9 million for next year. How much will the firm generate in operating income if all professionals hit their target billable hours
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