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. Furthermore, 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.

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?

2.For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $187,500 . What would sales in units have to be in 20x2 to reach the profit goal? 3.For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $35,000.00 how many lamps must be sold to breakeven?

4.For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $3.50 a unit how many lamps must be sold to breakeven?

5.For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $3.50 a unit how many lamps must be sold to breakeven?

6.If for 20x2 the selling price per lamp is increased to $48.50 a unit how many lamps must be sold to breakeven?

7.If for 20x2 the selling price per lamp is decreased to $41.50 a unit how many lamps must be sold to breakeven?

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: Expected increases for 202 When calculating projected increases round to TWO ($0.00) decimal places. 1. Material Costs are expected to increase by 2.50%. 2. Labor Costs are expected to increase by 3.50%. 3. Variable Overhead is expected to increase by 6.00%. 4. Fixed Overhead is expected to increase to $295,000. 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 5.00%. 7. Fixed selling expenses are expected to be $25,000 in 202. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 6.00%. 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. I See The Light Projected Balance Sheet As of December 31, 20x1 I See The Light Projected Income Statement For the Period Ending December 31, 20x1