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Howard Cooper, the president of Zachary Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes
Howard Cooper, the president of Zachary 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. 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 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 Zachary charges customers $76 per hour, the firm can achieve 52,000 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 37,000 . Prepare a flexible budget using the new assumption. Complete this question by entering your answers in the tabs below. 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 3 . b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the numi achieve. According to the consultant's analysis, if Zachary charges customers $76 per h 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 nur Prepare a flexible budget using the new assumption. Complete this question by entering your answers in the tabs below. Prepare the pro forma income statement that would appear in the master budget if the firm e of services in Year 3 . b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of se achieve. According to the consultant's analysis, if Zachary charges customers $76 per hour, the 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 Prepare a flexible budget using the new assumption. Complete this question by entering your answers in the tabs below. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service achieve. According to the consultant's analysis, if Zachary charges customers $76 per hour, the firm c of services. Prepare a flexible budget using the consultant's assumption. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service achieve. According to the consultant's analysis, if Zachary charges customers $76 per hour, the firm c 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 servic Prepare a flexible budget using the new assumption. Complete this question by entering your answers in the tabs below. The same consultant also suggests that if the firm raises its rate to $86 per hour, the number of service hou 37,000. Prepare a flexible budget using the new assumption
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