Can you please assist with parts 2 & 3?

I See The Light

Projected Income Statement

For the Period Ending December 31, 20x1

Sales 25,000 lamps @ $45.00 $1,125,000.00

Cost of Goods Sold @ $30.00 750,000.00

Gross Profit $375,000.00

Selling Expenses:

Fixed $23,000.00

Variable (Commission per unit) @ $3.00 75,000.00 $98,000.00

Administrative Expenses:

Fixed $42,000.00

Variable @ $2.00 50,000.00 92,000.00

Total Selling and Administrative Expenses: 190,000.00

Net Profit $185,000.00

I See The Light

Projected Balance Sheet

As of December 31, 20x1

Current Assets

Cash $34,710.00

Accounts Receivable 67,500.00

Inventory

Raw Material

Lamp Kits 500 @ $16.00 8,000.00

Work in Process 0 -

Finished Goods 3000 @ $30.00 90,000.00

Total Current Assets $200,210.00

Fixed Assets

Equipment $20,000.00

Accumulated Depreciation 6,800.00

Total Fixed Assets 13,200.00

Total Assets $213,410.00

Current Liabilities

Accounts Payable $54,000.00

Total Liabilities $54,000.00

Stockholder's Equity

Common Stock $12,000.00

Retained Earnings 147,410.00

Total Stockholder's Equity 159,410.00

Total Liabilities and Stockholder's Equity $213,410.00

PART 1

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:

$16.0000000

per lamp

Direct Labor:

2.0000000

per lamp (4 lamps/hr.)

Variable Overhead:

2.0000000

per lamp

Fixed Overhead:

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 2.00% .

2. Labor Costs are expected to increase by 5.50%.

3. Variable Overhead is expected to increase by 3.50%.

4. Fixed Overhead is expected to increase to $295,000.

5. Fixed Administrative expenses are expected to increase to $50,000.

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 $23,000 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.

	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.
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?
	sales		45
	variable cost		-25.72
	contribution margin		19.28
	Contribution Margin per unit (Round to two places, $##.##)							$19.28	{5.01}
	Contribution Margin Ratio (Round to four places,% is two of those places ##.##%)							42.84%	{5.02}
2.	For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $185,000 . What
	would sales in units have to be in 20x2 to reach the profit goal?
	sales
	variable cost
	contribution margin
	fixed cost
	net income
	Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)								{5.03}
3.	For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $30,000.00 how many lamps
	must be sold to breakeven?
	sales
	variable cost
	contribution margin
	fixed costs
	Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)								{5.04}

4.	For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $3.00 a unit how many lamps
	must be sold to breakeven?
	sales		45
	variable costs
	contribution margin
	fixed costs
	net income
	Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)							{6.01}
5.	For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $3.00 a unit how many lamps
	must be sold to breakeven?
	Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)							{6.02}
6.	If for 20x2 the selling price per lamp is increased to $48.00 a unit how many lamps must be sold
	to breakeven?
	Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)							{6.03}
7.	If for 20x2 the selling price per lamp is decreased to $42.00 a unit how many lamps must be sold
	to breakeven?
	Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)							{6.04}

PART 3
	Budgets
Division N has decided to develop its budget based upon projected sales of 31,000 lamps at
$52.00 per lamp.
The company has requested that you prepare a master budget for the year. This budget is to be used
for planning and control of operations and should be composed of:
1. Production Budget
2. Materials Budget
3. Direct Labor Budget
4. Factory Overhead Budget
5. Selling and Administrative Budget
6. Cost of Goods Sold Budget
7. Budgeted Income Statement
8. Cash Budget
Notes for Budgeting:
The company wants to maintain the same number of units in the beginning and ending inventories of
work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 525 pieces and
decreasing the finished goods by 20%.
Complete the following budgets
1	Production Budget
	Planned Sales
	Desired Ending Inventory of Finished Goods
	Total Needed
	Less: Beginning Inventory
	Total Production				{7.01}

2	Materials Budget
	Lamp Kits
	Needed for Production					{8.01}
	Desired Ending Inventory					{8.02}
	Total Needed					{8.03}
	Less: Beginning Inventory					{8.04}
	Total Purchases
	Cost per piece					{8.05}
	Cost of Purchases (Round to two places, $##.##)					{8.06}
3	Direct Labor Budget
	Labor Cost Per Lamp					{8.07}
	Production
	Total Labor Cost (Round to two places, $##.##)					{8.08}
4	Factory Overhead Budget
	Variable Factory Overhead:
	Variable Factory Overhead Cost Per Unit
	Number of Units to be Produced
	Total Variable Factory Overhead (Round to two places, $##.##)					{8.09}
	Fixed Factory Overhead					{8.10}
	Total Factory Overhead (Round to two places, $##.##)					{8.11}

4	Factory Overhead Budget
	Overhead Allocation rate based on:
	1. Number of Units
		Total Factory Overhead / Number of Units
		(Round to two places, $##.##)						{9.01}
5	Cost of making one unit next year
		Cost of one Lamp Kit
		Labor Cost Per Lamp						{9.02}
		Factory overhead per unit
		Total cost of one unit						{9.03}
		(Round to two places, $##.##)
6	Selling and Admin. Budget
	Fixed Selling
	Variable Selling (Round to two places, $##.##)							{9.04}
	Fixed Administrative
	Variable Administrative (Round to two places, $##.##)							{9.05}
	Total Selling and Administrative (Round to two places, $##.##)							{9.06}
7	Cost of Goods Sold Budget - Assume FIFO (First-In, First-Out) and overhead is applied based on the number of units to be produced.						Round dollars to two places, $##.##
	Beginning Inventory, Finished Goods							{9.07}
	Production Costs:
	Materials:
	Lamp Kits:
	Beginning Inventory
	Purchased
	Available for Use
	Ending Inventory of Lamp Kits							{9.08}
	Lamp Kits Used In Production
	Total Materials:							{9.09}
	Labor							{9.10}
	Overhead							{9.11}
	Cost of Goods Available							{9.12}
	Less: Ending Inventory, Finished Goods							{9.13}
	Cost of Goods Sold							{9.14}

7	Budgeted Income Statement
	Sales
	Cost of Goods Sold
	Gross Profit
	Selling Expenses & Admin. Expenses
	Net Income									{10.01}
8	Cash Budget
Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and
Payables of 12/31/x1 will have a cash impact in 20x2.)
1. 15.00% of sales for the year are made in November and December. Since our customers have 60 day terms
those funds will be collected be collected in January and February.
2. 80.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February.
3. All other manufacturing and operating costs are paid for when incurred.
4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses.
5. Minimum Cash Balance needed for 20x2, $165,000 .
I See The Light
Projected Cash Budget
For the Year Ending December 31, 20x2
									Round dollars to two places, $##.##
	Beginning Cash Balance
	Cash Inflows:
		Sales Collections:
			Account Receivable (Sales last year not collected)							{10.02}
			Sales made and collected in 20x2							{10.03}
			Cash Available							{10.04}
	Cash Outflows:
		Purchases
			Accounts Payable (Purchases last year)
			Purchases made and paid for in 20x2							{10.05}
		Other Manufacturing Costs
			Direct Labor
			Total Manufacturing Overhead
		Selling and Administrative
		Less: Depreciation								{10.06}
			Total Cash Outflows							{10.07}
	Budgeted Cash Balance before financing									{10.08}
	Needed Minimum Balance
	Amount to be borrowed (if any)									{10.09}
	Budgeted Cash Balance									{10.10}