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Checkm Howard Cooper, the president of Campbell 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 1. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling. general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative $89.00 33.00 6.20 4.30 $523,000 144,000 Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 31000 hours of services in Year 1. 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 Campbell charges customers $84 per hour, the firm can achieve 36.000 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 $94 per hour, the number of service hours will decline to 25,000 Prepare a flexible budget using the new assumption Required A Required B Required C Prepare the pro forma income statement that would appear in the of services in Year 1. CAMPBELL COMPUTER SERVICES Pro Forma Income Statement Master Budget Variable costs: Fixed costs: RAQUA Required A Required B Required C A marketing consultant suggests to Mr. Cooper that the service rate ma achieve. According to the consultant's analysis, if Campbell charges cus hours of services. Prepare a flexible budget using the consultant's assu CAMPBELL COMPUTER SERVICES Pro Forma Income Statement Flexible Budget Variable costs: Fixed costs:

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