1.

Proforma
income
statement for
30,000 hours
service.

Glacier Computer Services

Proforma Income Statement

Service Hours 30000

Rate / hr
Service
60.00 1800000
Revenue

Variable costs

Labor cost 32.00 960000

Overhead cost 5.76 172800

SG & A cost 3.44 103200

Total variable
1236000
costs

Fixed costs

Facility
320000
mantenance

SG & A cost 120000

Total Fixed
440000
Costs

Total costs 1676000

Net operating
124000
income
2. Proforma
income
statement for
service rate of
$56 per hour

Glacier Computer Services

Proforma Income Statement

Service Hours 38000

Rate / hr
Service
56.00 2128000
Revenue

Variable costs

Labor cost 32.00 1216000

Overhead cost 5.76 218880

SG & A cost 3.44 130720

Total variable
1565600
costs

Fixed costs

Facility
320000
mantenance

SG & A cost 120000

Total Fixed
440000
Costs

Total costs 2005600

Net operating
122400
income
3. Proforma
income
statement for
service rate of
$64 per hour.

Glacier Computer Services

Proforma Income Statement

Service Hours 25000

Rate / hr
Service
64.00 1600000
Revenue

Variable costs

Labor cost 32.00 800000

Overhead cost 5.76 144000

SG & A cost 3.44 86000

Total variable
1030000
costs

Fixed costs

Facility
320000
mantenance

SG & A cost 120000

Total Fixed
440000
Costs

Total costs 1470000

Net operating
130000
income