answer only the shaded yellow boxes

4 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations 8 The projected cost of a lamp is calculated based upon the projected increases or decreases to 9 current costs. The present costs to manufacture one lamp are:-+ Figurines Electrical Sets Lamp Shade Direct Labor Variable Overhead: Fixed Overhead $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lamps/hr.) 0.2250000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp $28.9250000 per lamp 32 Expected increases for 20x2 39 When calculating projected increases round to SEVEN decimal places, 50.0000000 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Pres. A- = Merge Centel Paste aste format Painter BIU... S Alignment Number Clipboard Font A1 X fx LA B B C D E F 32 Expected increases for 20x2 39 When calculating projected increases round to SEVEN decimal places $0.0000000 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 4.50% 4. Fixed Overhead is expected to increase to $270,000. 5. Fixed Administrative expenses are expected to increase to $60,000 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.50% 7. Fixed selling expenses are expected to be $39,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 5.00% 83 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 4 5 6 7 8 9 10 14 15 16 18 Pres .... 17 READY A B C D E - 2. Labor Costs are expected to increase by 3.00% 3. Variable Overhead is expected to increase by 4.50%. 4. Fixed Overhead is expected to increase to $270,000 5. Fixed Administrative expenses are expected to increase to $60,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.50% 7. Fixed selling expenses are expected to be $39,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 5.00% 83 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 105 15 16 17 18 pres READY oooow I See The Light, Inc Schedule of Projected Costs 9 Variable Manufacturing Unit Cost 20x1 Cost Projected Percent 20x2 Cost Rounded to 7 Decimal Places Increase 11 Figurines E T 6 13 Electrical Sets 14 Lamp Shade 15 Labor 46 Variable Overhead 9.3840000 1.2750000 .1200000 2.2950000 0.2295000 {4.01} {4.02) (4.03} {4.04 4.05} 19 Projected Variable Manufacturing Cost Per Unit 19.3035000 (4.06} 23 Total Vanable Cost Per Ilnit ... 2 3 4 READY 5 11 12 13 14 15 16 17 18 Pres - 18 Type here to search oe - OG Wrap Text FILE HOME INSERT PAGE LAYOUT Cut Times New Roma. 12 A e Copy Format Painter BLUSA E Clipboard Font Paste E Merge & Center - $ - % *8.98 Condit Formatt Alignment Number 3 Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 6 Variable Selling 7 Variable Administrative 18 Projected Variable Manufacturing Unit Cost 20x2 Cost Rounded to 7 Decimal Places 3.2130000 0.0612000 19.3035000 {4.07} {4.08) (4.06} 12 Projected Total Variable Cost Per Unit 22.5777000 (4.09) T 7 Schedule of Fixed Costs 20x1 Cost Projected Percent Increase CO 20x2 Cost Rounded to 2 Decimal Places 270000.00 (4.10} lamps @_) 9 Fixed Overhead 0 (normal capacity of 1 Fixed Selling 3 Fixed Administrative 1 39000.00 000000 (411) (4.12} 6 62738 9 10 11 12 13 14 15 16 17 18 Pres... EADY 1 Type here to search DATA REVIEW VIEW FILE HOME INSERT PAGE LAYOUT FORMULAS y of Cut Times New Roma - 12 JAN Be Copy Paste BIU- Format Painter Clipboard Font X for . 33 Et EWrap Text Merge & Center - $ % , Alignment Number DE 20x1 Cost Projected Percent Increase 26 Variable Selling 27 Variable Administrative 28 Projected Variable Manufacturing Unit Cost 29 20x2 Cost Rounded to 7 Decimal Places 3.2130000 0.0612000 19.3035000 {4.07) (4.08) (4.06) 32 Projected Total Variable Cost Per Unit 22.5777000 (4.09 37 Schedule of Fixed Costs 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places 270000.00 4.10) lamps @_) 39 Fixed Overhead 40 (normal capacity of 41 Fixed Selling 43 Fixed Administrative 39000.00 60000.00 (4.11) (412) 36900000 (4.13) 45 Projected Total Fixed Costs 46 ... 2 3 4 8 9 10 11 12 13 14 15 16 17 18 Pres... READY Type here to search + Loco PART 2 Cost Volume Relationships - Profit Planning Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis based on the following assumptions. Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the number of units and then multiply by the selling price per unit. 10 11 12 16 1 For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution margin ratio for each lamp sold? 17 18 / / / / / / / / / W / / / / / / / / / / / / / / / / / / 26 / X / / / / / 30 Contribution Margin per unit (Round to seven places S### 56 9 10 ## 11 $19.2400000 5.011 16 17 18 Pres... 12 1.14 15 READY 1 Type here to search DATA REVIEW View FORMULAS A . A. 2. E Wrap Text Merge & Center FILE HOME INSERT PAGE LAYOUT X Cut MS Sans Serif 10 Be Copy - Paste Format Painter BIU - - Clipboard 133 : X fir A B C D Conditional For Formatting Font Alignment STY 30 Contribution Margin per unit (Round to seven places, S ) $19.2400000 15.01) 31 32 33 Contribution Margin Ratio (Round to seven places, % is two of those places ## ****#%) 42.76000% {5.02) 36 37 2. For 20x2 the selling price per lamp will be $45.00. How many lamps must be sold to breakeven? 38 40 5 Breakeven sales in units (Round up to zero places, ######units) {5.03) 93. For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $274.000. What would sales in units have to be in 20x2 to reach the profit goal? + ... 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Pres.... ADH Type here to search 2. W Conc Form FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW , cut MS Sans Serif 10 HAN Wrap Text J Copy Paste BIU -> A EEEEE Merge & Center - $ . %, Format Painter Clipboard Font Alignment Number 133 - X fr A B 57 58 59 3 For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $274,000. What would sales in units have to be in 20x2 to reach the profit goal? Sales in units (Round up to zero places, ### ### units) {5.04 4. For 20x2 the selling price per lamp will be $45.00. The company would like to have a net income equal to 23.00% of sales. If that is to be achieved, what would be the sales in units in 20x2? Sales in units (Round up to zero places, ####,### units) L {6.01} If the company believed that it could only sell 25,000 lamps, what would the new selling price have to be so that the new contribution margin per unit is equal to last year's contribution margin per unit? New Selling Price (Round up to two places S######## ... 2 3 4 5 6 7 8 9 10 + 11 {6.021 18 Pres 13 .14 15 16 17 ADY Type here to search o e o ILE FORMULAS DATA REVIEW HOME INSERT PAGE LAYOUT of out MS Sans Serif -8.5 a Copy - BIU. . Format Painter Clipboard Font - X & fx VIEW Wrap Text Merge & Center - . A. 3 $ . % , *8.99 Conditional Formatting Alignment 15. If the company believed that it could only sell 25,000 lamps, what would the new selling price have to be so that the new contribution margin per unit is equal to last year's contribution margin per unit? New Selling Price (Round up to two places, S##### {6.02) 16. For 20x2 the selling price per lamp will be $45.00. How many units must be sold to generated a net income of $200,000? Sales in units (Round up to zero places, units) (603) 7 the If the company believes that the demand will be 27.500 units for the year. What selling price per lamp rounded to two places, would generate a net income of $823.500? ... 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Pres... ADY Type here to search o tep FILE HUMEINSERT PAUL UNUI TURMUUU X Cut La Copy Format Painter Clipboard MS Sans Serif BIU 8.5 AA . A E" Wrap Text Merge & Center - Paste $ - % *8.8 Conditional Forma Formatting Table Styles Alignment Number A B C I Sales in units (Round up to zero places, # # units) {6.03) If the company believes that the demand will be 27,500 units for the year. What selling price per lamp, rounded to two places would generate a net income of $823,500? 30 7. 51 55 56 New selling price per lamp (Round up to two places, S . {6.04 ENSEADON 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Pres