25,000 lamps@ $45.00 $30.00 $ 1,125,000.00 750,000.00 375,000.00 Sales Cost of Goods Sold Gross Profit Selling Expenses: Fixed 23,000.00 75,000.00 $ 98,000.00 Variable (Commission per unit) $3.00 Administrative Expenses: Fixed $42,000.00 50,000.00 Variable @ $2.00 92.000,00 Total Selling and Administrative Expenses: 190.000.00 Net Profit 185,000.00 I See The Light Projected Bal ance Sheet As of December 31, 20x1 Current Assets Cash 34,710.00 67,500.00 Accounts Receivable Inventory Raw Material 500 $16.00 8.000,00 Lamp Kits Work in Process C 90.000.00 3000 $30.00 Finished Goods Total Current Assets 200,210.00 Fixed Assets 20.000.00 6,800.00 Equipment Accumulated Depreciation 13.200.00 213,410.00 Total Fixed Assets Total Assets Current Liabilities Accounts Payable 54.000,00 Total Liabilities 54,000.00 Stockholder's Equity S Common Stock 12.000.00 Retained Eamings 147,410,00 Total Stockholder's Equity Total Liabilities and Stockholder's Equity 159,410.00 213.410,00 The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are Lamp Kit: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2,0000000 per lamp Direct Labor Variable Overhead: 10.0000000 per lamp (based on ne ormal capacity of 25,000 lamps) Fixed Overhead: Cost per lamp: $30.0000000 per lamp Expected increases for 20x2 When calculating projected increases round to TWO ($0.00) decimal places. 1. Material Costs are expected to increase by 2.00 % 2. Labor Costs are expected to increase by 3.00 %. 3. Variable Overhead is expected to increase by 5.50% . 4. Fixed Overhead is expected to increase to $265,000. 5. Fixed Admin istrative expenses are expected to increase to $60,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.50% 7. Fixed selling expenses are expected to be $33,000 in 20x2 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 3.50% . On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs Variable Manufacturing Unit Cost 20x1 Cost Projected 20x2 Cost Rounded to 2 Percent Decimal Places Increase Lamp Kit (4.01 2Labor (4.02 Variable Overhead (4.03) Projected Variable Manufacturing Cost Per Unit (4.04 Total Variable Cost Per Unit 20x1 Cost Projected 20x2 Cost Rounded to 2 Percent Decimal Places Increase Variable Selling (4.05 (4.06 Variable Admin istrative 5Projected Variable Manufacturing Unit Cost {4.04 9Projected Total Variable Cost Per Unit 4.07 Schedule of Fixed Costs 20x1 Cost Projected 20x2 Cost Percent Increase 4.08 Fixed Overhead lamps@ (normal capacity of Fixed Selling {4.09) Fixed Administrative 4.10 Projected Total Fixed Costs (4.11 g Al is about to begin wark an the budget for 202 and they have requested that you prepare an aalysis based an the fallowing assumpions. Note: Remember, that we canot sell part of a lamp, therefore to find the number of units you have to round up to the next camplete unit. Furthuremare, to find the required sales in dallars it may be easier to find the number of units and then musply by the selling price per unit Far 20x2 the selling price per lamp will be $45.00. What is the prajected cantribufion margin and cantribusion margin ratio fr each lamp sald? Cantribuion Margin per unit (Round to two places, SMWW (5.01 Cantribuian Margin Raio (Round to four places,% is two of thase places M%) (5.02) For 202 he selling price per lamp will be $45.00. The desired net incame in 20x2 is $207.500. What would sales in units have to be in 20x2 to reach the profit goal? Breakeven sales in units (Sinoe we cannot sall part of a unit round up to the nat unit if noodad) (5.03) Far 202 the selling price per lamp will be $45.00. Ifthe fixed cost increase by $30,000.00 haw mary lamps must be sald to breakeven? (5.04 Breakeven sales in units (Sinoe we cannot sall part of a unit round up to the nat unit if noodad)
