Question
Curtis Salter, the president of Kasimer Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he
Curtis Salter, the president of Kasimer 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 2015. Standard rate and variable costs Service rate per hour $ 87.00 Labor cost 39.00 Overhead cost 6.60 Selling, general, and administrative 3.60 cost Expected fixed costs Facility maintenance $523,000 Selling, general, and administrative 146,000 Required a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 44,000 hours of services in 2015.
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