Return to question Howard Cooper, the president of Jordan 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. Standard rate and variable costs Service rate per hour $ 87.00 Labor cost 30. 00 Overhead cost 6. 30 Selling, general, and administrative cost 3. 70 Expected fixed costs Facility maintenance $515 , 000 Selling, general, and administrative 143, 000 Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 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 Jordan charges customers $82 per hour, the firm can achieve 39,000 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 $92 per hour, we number of service hours will decline to 26,000. Prepare a flexible budget using the new assumption. x Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C DD F12 F9 F10Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to q x Answer is not complete. 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 if the firm expects to provide 30,000 hours of services in Year 3. JORDAN COMPUTER SERVICES Pro Forma Income Statement Master Budget Services revenue O Variable costs: Labor cost V Overhead cost Selling, general, and administrative costs Contribution margin 0 Fixed costs Facility maintenance Selling, general, and administrative costs Net income O s 0 x Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Requirect B Required C 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 Jordan charges customers $82 per hour, the firm can achieve 39,000 hours of services. Prepare a flexible budget using the consultant's assumption. JORDAN COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Services revenue Variable costs: Labor cost O Overhead cost Selling, general, and administrative costs V Contribution margin $ 0 Fixed costs: Facility maintenance Selling, general, and administrative costs Net income 0 Ic raw HillRe 2 x Answer is not complete. Complete this question by entering your answers in the tabs below. joints Required A Required B Required C The same consultant also suggests that if the firm raises its rate to $92 per hour, the number of service hours will decline to 26,000. Prepare a flexible budget using the new assumption. JORDAN COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Services revenue V Variable costs: Labor cost V Overhead cost Selling, general, and administrative costs Contribution margin 0 Fixed costs: Facility maintenance Selling, general, and administrative costs Net income $ 0 Mc