continuation of part 2

For 20x2 the selling price per lamp will be $45.00. If the variable cost Increase by $6.50 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) For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $6.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sel part of a unit round up to the next unit it needed) If for 20x2 the selling price per lamp is increased to $51.50 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 Anh needed) 5 6 (8.02) If for 20x2 the selling price per lamp is increased to $51.50 a unt how many lamps must be sold to breakeven? 8 3 4 5 B Breakeven sales in units (Since we cannot sel part of a unit round up to the next unit needed) (6.03) it for 20x2 the selling price per lamp is decreased to $38.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sed part of a unit round up to the next needed) (8.04) 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: Fored 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 pet 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 5.00%. 4. Fixed Overhead is expected to increase to $285,000. 5. Fixed Administrative expenses are expected to increase to $62,000. 6. Variable seling expenses (measured on a per lamp basis) are expected to increase by 4.50%. 7. Fixed selling expenses are expected to be $35,000 in 20x2. 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 Vanable Unit Cost per lamp 3- 20x2 Projected Fixed Costs 1 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 8,000.00 500 @ $16.00 0 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 1 See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 750,000.00 $ 375,000.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses Fixed Variable (Commission per unit) $3.00 Administrative Expenses: Fixed Variable @ $2.00 Total Selling and Administrative Expenses: Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92,000.00 190,000.00 185,000.00 1 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 Fbced Assets Total Assets $ 20,000.00 5.800.00 13,200.00 213.410.00 S