Management of Jackson Company is holding a planning session for fiscal year 20XX. They have already established the following standard price and costs for their canned product:

Using the form below, prepare the pro forma income statement that would appear in the master budget if the company expects to produce 780,000 cans in 20XX. A marketing consultant suggests to the Company's president that the product's price may affect the number of cans the company can sell. According to the consultant's analysis, if the firm sets its price at $6.70, it could sell 910,000 cans. Prepare a flexible budget based on the consultant's suggestion. The same consultant also suggests that if the company raises its price to $7.70 per can, the volume of sales would decline to 650,000 . Prepare a flexible budget based on this suggestion. Evaluate the three possible outcomes developed in Requirements a,b, and c, and recommend a pricing strategy