Howard Cooper, the president of Munoz 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 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 17.00 37.00 6.70 4.10 $ 524,000 140,000 Required: a. Prepare the proforma income statement that would appear in the master budget If the firm expects to provide 37,000 hours of services In Year b. A marketing consultant suggests to Mr.Cooper that the service rate may affect the number of service hours that the firm con achieve According to the consultants analysis. If Munoz charges customers $82 per hour the firm can achieve 42.000 hours of services. Prepare a flexible budget using the consultant's assumption c. The same consultant also suggests that if the firm raises ts rate to $92 per hour, the number of service hours will decine to 32.000, Prepare a flexible budget using the new assumption Complete this question by entering your answers in the tabs below. Required A Required e Required har har hutan Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare the pro forma income statement that would appear in the master budget of the firm expects to provide 37.000 hours of services in Year 1. yes MUNOZ COMPUTER SERVICES Pro Forma Income Statement Master Budget Variable costs Fored costs 5 Required B > Complete this question by entering your answers in the tabs below. Required A Requnende 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 Munoz charges customers $82 per hour, the firm can achieve 42,000 hours of services. Prepare a flexible budget using the consultant's assumption. MUNOZ COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs 0 Fixed costs O Required A Required Complete this question by entering your answers in the tabs below. Required A Required B Required The same consultant aho suggests that if the firm raises its rate to $92 per hour, the number of service hours will decline to 32,000. Prepare a flexible budget using the new assumption MUNOZ COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs Fixed costs