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Vancouver Consulting Associates, a division of Maple Leaf Services Corporation, offers management and computer consulting services to clients throughout Canada and the northwestern United States. The division specializes in website development and other Internet applications. The corporate management at Maple Leaf Services is pleased with the performance of Vancouver Consulting Associates for the first nine months of the current year and has recommended that the division manager, Richard Howell, submit a revised forecast for the remaining quarter, as the division has exceeded the annual plan year- to-date by 20 percent of operating income. An unexpected increase in billed hour volume over the original plan is the main reason for this increase in income. The original operating budget for the first three quarters for Vancouver Consulting Associates follows. Howell will reflect the following information in his revised forecast for the fourth quarter. Vancouver Consulting Associates currently has 25 consultants on staff, 10 for management consulting and 15 for computer systems consulting. Three additional management consultants have been hired to start work at the beginning of the fourth quarter in order to meet the increased client demand. The hourly billing rate for consulting revenue will remain at $ 180 per hour for each management consultant and $ 150 per hour for each computer consultant. However, due to the favorable increase in billing hour volume when compared
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