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Enterprise Tax Services (ETS) provides tax-planning services to its clients. The company billed 5,000 hours at $100 per hour for the year just completed. ETS, in planning next year's operations, is focusing on increasing the company's share of the market. It proposes to do that by hiring more tax specialists and by lowering its billing rate by 20% for work done by these new specialists. ETS estimates that revenues generated from existing staff would increase in total by 40% as a result of the new billing policy and that the additional specialists will provide billings of 3,000 hours (at the reduced rate) during the coming year.
Required:
Compute the budgeted revenue amount for next year based on ETS's plans and projections
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