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ork #8 0 , the president of income if he changes the service rate that the firm charges its customers. The following basic data pertain

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ork #8 0 , the president of income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal year 2019. Service rate per hour Labor cot Over $85.00 38.00 6.80 3.80 Expected fixed costs Facility maintenanese $520,000 142,000 Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 39,000 hours of b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can services in 2019. achieve. According to the consultant's analysis, if Perez charges customers $80 per hour, the firm can achieve 45,000 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 $90 per hour, the number of service hours wll decline to 35.000 Prepare a flexible budget using the new assumption. Com plete this question by entering your answers in the tabs below. red B Requi Prepare the pro forma income statement that would appear in the of services in 2019. master budget if the firm expects to provide 39,000 hours PEREZ COMP

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