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 2019. $ 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 84.00 38.00 6.70 3.50 $516,000 146,000 Required: a. Prepare the proforma Income statement that would appear in the master budget If the firm expects to provide 41,000 hours of services in 2019. 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 $79 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 $89 per hour, the number of service hours will decline to 36,000. Prepare a flexible budget using the new assumption Required A Required B Required Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 41,000 hours of services in 2019. SOLOMON COMPUTER SERVICES Pro Forma Income Statement Master Budget Variable costs: Fixed costs: SO Required 3 > 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 $79 per hour, the firm can achieve 51,000 hours of services. Prepare a flexible budget using the consultant's assumption. SOLOMON COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs: Fixed costs: Required A Required B Required C The same consultant also suggests that if the firm raises its rate to $89 per hour, the number of service hours will decline 36,000. Prepare a flexible budget using the new assumption. SOLOMON COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs: Fixed costs: