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

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Howard Cooper, the president of Glacier 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. $ 60.00 32.ee 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 $320,000 120,000 Required a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 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 Glacier charges customers $56 per hour, the firm can achieve 38.000 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 S64 per hour, the number of service hours will decline to 25.000 Prepare a flexible budget using the new assumption Required A Required B Required C Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 hours of services in Year 3. GLACIER COMPUTER SERVICES Pro Forma Income Statement Master Budget Variable costs: Fixed costs: 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 Glacier charges customers $56 per hour, the firm can achieve 38,000 hours of services. Prepare a flexible budget using the consultant's assumption. GLACIER COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs Fixed costs: Required A Required B Required The same consultant also suggests that if the firm raises its rate to $64 per hour, the number of service hours will decline to 25,000. Prepare a flexible budget using the new assumption. GLACIER COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs Fixed costs Penud

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