4. Howard Cooper, the president of Solomon Computer Services, needs your help. He wonders about the potential effects on the firm's net Income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. 4.16 points $87.00 Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Bock 4.30 $52e, cee 141.ove Print Required: References a. Prepare the proforma Income statement that would appear in the master budget If the firm expects to provide 43,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, If Solomon charges customers $82 per hour, the firm can achieve 49,000 hours of services. Prepare a flexible budget using the consultants assumption c. The same consultant also suggests that if the firm raises its rate to $92 per hour, the number of service hours will dectine to 38,000, Prepare a flexible budget using the new assumption. Complete this question by entering your answers in the tabs below. Required A Required Required Drepare the pro forma income statement that would appear in the master budget if the firm expects to provide 43,000 hours of services in Year 3. SOLOMON COMPUTER SERVICES Pre Forma Income statement Master Budget Variable costs Fixed costs 5 0 Required > Complete this question by entering your answers in the tabs below. Required A Required B Required A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Solomon charges customers $82 per hour, the firm can achieve 49,000 hours of services. Prepare a flexible budget using the consultant's assumption. SOLOMON COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs 0 Fixed costs: Complete this question by entering your answers in the tabs below. Required A Required B Required c The same consultant also suggests that if the firm raises its rate to $92 per hour, the number of service hours will decline to 38,000. Prepare a flexible budget using the new assumption SOLOMON COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs Fixed costs: