Susan, I have just seen the quarterly P& L. It’s great that we exceeded our billed hours and...

Susan, I have just seen the quarterly P& L. It’s great that we exceeded our billed hours and revenue targets. But why, with higher revenues, is our bottom line less than half of what we had budgeted. Can we have a meeting tomorrow morning at 8 AM so you can explain this discrepancy to me? Richard Norton had founded Software Associates ten years ago to perform system integration projects for clients. While initially set up to operate in client- server environments, Norton had been nimble enough to make the transition to Web applications, and his company had continued to grow and prosper during the rapid technological evolution of the 1990s. Annual revenues exceeded $ 12 million, and profit margins were usually between 15% and 20%. Currently, Software Associates offered two types of services to clients. The Solutions business helped clients rapidly develop targeted information management strategies, and then mobilized business and technology resources to deliver software solutions. Typical services included IT strategy and management, IT architecture and design, information management, and data warehousing. The Contract business offered clients experienced software engineers, program mers, and consultants, on a short- term project basis, to help the clients implement their own IT tools and solutions. This service enabled clients to implement major IT projects without having to hire expensive, experienced software personnel. Expense Analysis Jenkins knew that the budgete