Answer the yellow boxes:
I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $45.00 $30.00 $ 1,125,000.00! 750,000.00 $ 375,000.00 Sales 25,000 lamps @ Cost of Goods Sold @ Gross Profit Selling Expenses: Fixed Variable (Commission per unit) Administrative Expenses: Fixed Variable @ Total Selling and Administrative Expenses: Net Profit $3.00 $ 23,000.00 75,000.00 $ 98,000.00 $2.00 $ 42,000.00 50,000.00 92,000.00 $ 190,000.00 185,000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 500 @ $16.00 8,000.00 3000 @ $30.00 90,000.00 200,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 $ 13,200.00 213,410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 159,410.00 213,410.00 $ Fixed and Variable Cost Determinations Unit Cost Calculations 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: Direct Labor: Variable Overhead: Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 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 5.50%. 2. Labor Costs are expected to increase by 6.00%. 3. Variable Overhead is expected to increase by 4.50%. 4. Fixed Overhead is expected to increase to $290,000. 5. Fixed Administrative expenses are expected to increase to $62,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.00% 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 2.00%. 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. Schedule or Projecte costs Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 5.5 20x2 Cost Rounded to 2 Decimal Places Lamp Kit Labor Variable Overhead 2/lamp(4lamp/1h $16.88 $2.12 $2.09 {4.01) {4.02) {4.03) 4.5 Projected Variable Manufacturing Cost Per Unit $21.09 {4.04} Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Variable Selling Variable Administrative Projected Variable Manufacturing Unit Cost - 2 3.12 2.04 5.16 {4.05) {4.06) {4.04} Projected Total Variable Cost Per Unit 26.25 {4.07) Schedule of Fixed Costs 20x1 Cost 20x2 Cost Projected Percent Increase 16 250000 $ 290,000.00 {4.08) lamps @_) Fixed Overhead (normal capacity of Fixed Selling Fixed Administrative 23000 42000 {4.09) {4.10} 47.619 $ 62,000.00 Projected Total Fixed Costs $ 391,000.00 {4.11} I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $45.00 $30.00 $ 1,125,000.00! 750,000.00 $ 375,000.00 Sales 25,000 lamps @ Cost of Goods Sold @ Gross Profit Selling Expenses: Fixed Variable (Commission per unit) Administrative Expenses: Fixed Variable @ Total Selling and Administrative Expenses: Net Profit $3.00 $ 23,000.00 75,000.00 $ 98,000.00 $2.00 $ 42,000.00 50,000.00 92,000.00 $ 190,000.00 185,000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 500 @ $16.00 8,000.00 3000 @ $30.00 90,000.00 200,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 $ 13,200.00 213,410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 159,410.00 213,410.00 $ Fixed and Variable Cost Determinations Unit Cost Calculations 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: Direct Labor: Variable Overhead: Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 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 5.50%. 2. Labor Costs are expected to increase by 6.00%. 3. Variable Overhead is expected to increase by 4.50%. 4. Fixed Overhead is expected to increase to $290,000. 5. Fixed Administrative expenses are expected to increase to $62,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.00% 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 2.00%. 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. Schedule or Projecte costs Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 5.5 20x2 Cost Rounded to 2 Decimal Places Lamp Kit Labor Variable Overhead 2/lamp(4lamp/1h $16.88 $2.12 $2.09 {4.01) {4.02) {4.03) 4.5 Projected Variable Manufacturing Cost Per Unit $21.09 {4.04} Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Variable Selling Variable Administrative Projected Variable Manufacturing Unit Cost - 2 3.12 2.04 5.16 {4.05) {4.06) {4.04} Projected Total Variable Cost Per Unit 26.25 {4.07) Schedule of Fixed Costs 20x1 Cost 20x2 Cost Projected Percent Increase 16 250000 $ 290,000.00 {4.08) lamps @_) Fixed Overhead (normal capacity of Fixed Selling Fixed Administrative 23000 42000 {4.09) {4.10} 47.619 $ 62,000.00 Projected Total Fixed Costs $ 391,000.00 {4.11}
