Mansfield Information Systems (MIS) is an IT support firm. Managers and staff are billed to clients on an hourly basis. The senior administrative staff does not directly provide client support. Because of the clientele of MIS, there is significant fluctuation from month to month.

Managers are billed to clients at a rate of $730 per hour and staff at a rate of $365 per hour. Managers are paid $240 per hour worked (including nonbillable time), and staff are paid $145 per hour. The current plan calls for managers to bill 830 hours in November and 650 hours in December. Staff are expected to bill 6,160 hours in November and 4,860 hours in December. Managers will work a total of 1,180 hours in both months, and staff will work a total of 7,860 hours in November and 6,300 hours in December.

Other monthly costs (all fixed) are $751,500 selling, general, and administrative, $151,500 in depreciation, and $253,000 in marketing.

Required:

A budgeted income statement for Mansfield Information Systems for November and December (separately).

Mansfield Information Systems Budgeted Income Statement November December Revenues: Managers Staff Total revenue Expenses: Manager pay Staff pay Total compensation Selling, general, and administrative Depreciation Marketing Total expenses Income (loss)