W.T. is considering changing the pricing strategy for the Retail Division, but wonders about the potential effects on the firm's net income if he changes the price per bar that the firm charges its customers. For June, he plans to only operate the truck for the standard 40 operating hours that he also used in May. This means that many of the operating costs are in effect fixed. The following basic data pertain to June 2018: Variable costs (per bar): Manufacturing and storage cost per ice cream bar $1.34 Cost of paper goods per bor 0.03 Expected fixed costs (total for the month): Labor cost $2,700 Depreciation on truck 750 Gas for truck 2,000 General and administrative costs 573 Required (round all computations to the nearest whole dollar): a. Prepare the pro forma income statement that would appears in the master budget if the firm expects to sell 5,000 bars in June at $4.00 per bar. b. A marketing consultant suggests to W.T. that the retail price may affect the number of bars the firm sells. According to the consultant's analysis, if CIC charges customers $3.75 per hour, the firm can sell 5,750 bars. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if the firm raises its rate to $4.25 per bar, the number of bars sold will decline to 4,500. Prepare a flexible budget using the new assumption. b Standard Master Budget Flexible Budget Flexible Budget Costs $4/bor $3.75/bar $4.25/bar 5,000 bars 1 5,750 bars 4,500 bars Sales Revenue Variable costs: + Mfg and storage $1.34/ea. Paper goods $0.03/ea. Contribution margin Fixed costs: Labor $2.700 Depreciation $750 Gas for truck $2.000 General and Admin. $573 Net income d. Evaluate the three possible outcomes you determined in Requirements a, b, and c and recommend a pricing strategy