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Foto Howard Cooper, the president of Campbell Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he

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Foto Howard Cooper, the president of Campbell 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 bosic data pertain to fiscal year 1. 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 $ 81.00 37.00 6.90 3.70 5519,000 144,000 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 Year 1. 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, i Campbell charges customers 576 per hour the firm can achieve 51.000 hours of services. Prepare a flexible budget using the consultant's assumption c. The same consultant also suggests that if the firm raises its rate to $86 per hour, the number of service hours will decline to 38,000. Prepare a flexible budget using the new assumption Complete this question by entering your answers in the tabs below. Required Required B Required Prepare the pro forma income statement that would appear in the master budget the firm expects to provide 44,000 hours of services In Year 1. CAMPBELL COMPUTER SERVICES Pro Forma Income Statement Master Budget Prev 1 of 1 Next Required A Required B Required 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 Year 1. CAMPBELL COMPUTER SERVICES Pro Forma Income Statement Master Budget Services revenue Variable costs Labor cost Overhead cost Selling general, and administrative costs Contribution margin Fixed costs Facility maintenance Selling general, and administrative costs Not incomo SA Required) 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 Campbell charges customers $76 per hour, the firm can achieve 51.000 hours of services. Prepare a flexible budget using the consultant's assumption. CAMPBELL COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs: $ 0 Foxed costs: $ 0

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