Format Painter B IU A Es Merge & Center - $ - % ; 898 board Font Formatting Alignment Number I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 723,250.00 $ 401,750.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $28.93 Gross Profit Selling Expenses Fixed Variable (Commission per unit) @ $3.15 Administrative Expenses: Fixed Variable @ $0.06 Total Selling and Administrative Expenses: Net Profit $ 23,000.00 78.750.00 $ 101,750.00 $ 42,000.00 1,500.00 43,500.00 145.250.00 S 256,500.00 HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW of cut === Copy Format Painter Clipboard Arial 10 A A BIU. 3- >. A. Wrap Text Merge & Center - e $ - %, 89 Conditi Formatt Font Alignment Number A B C D 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 Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ 500 @ $9.20 $1.25 4,600.00 625.00 3000 @ $28.93 86.790.00 194,225.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13,200.00 S 207,425.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Farinas ... 2 3 4 5 $ $ 54,000.00 54,000.00 $ 12,000.00 141425.00 4 6 7 8 9 10 11 16 17 18 Pres... Type here to search Arial opy Ormat Painter painter BIU, -10 - A = = = - A. EEE * E = Wrap Text Merge & Center - E $ % , 8.00 Conditional Fe Formatting Sty Card Font Alignment Number 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ 500 @ $9.20 $1.25 4,600.00 625.00 3000 @ $28.93 86.790.00 194,225.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13,200.00 S207.425.00 S 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 $ 12.000.00 141.425.00 153.425.00 207.425.00 S 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Pres.... Type here to search REVIEW PLE 4 VIEW H UME INSERI PAGE LAYOUT FORMULAS DATA X Cut MS Sans Serif -8.5 AA = = = Ee Copy Format Painter B I U $. A- 29 Paste Ep Wrap Text Merge & Center - $ -% Clipboard Font Alignment Number A X fx ABC MED Son 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 1 Material note are ovnerton to incroca hun FILE HUME INSERT PAUL LATUUT TUMLIVIULU = do Cut Copy Format Painter Clipboard MS Sans Serif BIU -8.5 - A A A Wrap Text Merge & Center - Paste > 3 $ % , Font Alignment Number CDEFG Fixed Overhead: 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 $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: 4 5 6 7 8 9 13 READY 14 15 16 17 18 Pres... 18 Type here to search FILE A REVIEW VIEW 0, Paste Wrap Text Merge & Center - HOME INSERT PAGE LAYOUT FORMULAS DATA X Cut MS Sans Serif - 8.5 : A A = = = La Copy - Format Painter BIU - - - A. Clipboard Font x fr B C D 2. Labor Costs are expected to increase by 3.00% $ - % Alignment Numb A1 F 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 I See The Light, Inc Schedule of Projected Costs 9 Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 11 Figurines 13 Electrical Sets 14 Lamp Shade 15 Labor 16 Variable Overhead 20x2 Cost Rounded to 7 Decimal Places 9.3840000 1.2750000 6.1200000 2 2950000 0 2295000 {4.013 (4.02) (4.03} {4.047 (4.05) 19 Projected Variable Manufacturing Cost Per Unit 19.3035000 (406) 23 Total Variable Cost Per Init . .. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 of Cut ED Copy Format Painter Clipboard Times New Roma - 12 BIU. . AA = . A . s Wrap Text Merge & Center - Paste E $ - % , Font Alignment Number 23 Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 26 Variable Selling 27 Variable Administrative 28 Projected Variable Manufacturing Unit Cost 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 38 39 Fixed Overhead 40 (normal capacity of 41 Fixed Selling 43 Fixed Administrative 20x2 Cost Rounded to 2 Decimal Places 270000.00 lamps @_) (410) 39000.00 60000.00 4.11) (412) 45 Projected Total Fixed Costs ... 2 3 4 5 6 7 8 9 10 11 12 13 369000.00 16 17 HEAD 14 (413) 18 Dres 15 9. Paste Times New Roma - 12-AA BIU - - A- De Copy Format Painter Clipboard Wrap Text Merge & Center - 3 $ - % ; 898 Com Forr Font Alignment Number 37 Schedule of Fixed Costs 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places 270000.00 39 Fixed Overhead 40 (normal capacity of 41 Fixed Selling 43 Fixed Administrative lamps @_) 4.103 39000.00 60000.00 [4.11] {4.12} 44 45 Projected Total Fixed Costs 369000.00 (4.13) A X Cut Copy Format Painter Clipboard MS Sans Serif .10 DA BIU SA = = = ? FEE Wrap Text Merge & Center Paste $ - % 2 .99 Conditio Formattir Font Alignment Number A B C D E 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 8 10 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? Contribution Margin per unit (Round to seven places, St $19.2400000 {5.01) Contribution Margin Ratio (Round to seven places, % is two of those places ) 42.76000% (502) 33 8 9 10 11 12 13 14 15 16 17 18 Pres... READY DATA REVIEW VIEW FILE a Wrap Text Paste 9 Merge & Center = .99 $. 9 = HOME INSERT PAGE LAYOUT FORMULAS X Cut MS Sans Serif - 10A EL Copy Format Painter BIU - A = Clipboard Font XV fic B Contribution Margin per unit (Round to seven places, S. Conditional Formata Formatting Table Styles Alignment Number 133 ) $19.2400000 {5.01} 30 31 32 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? kita lihat Breakeven sales in units (Round up to zero places ### ### units) {5.03) 59 3. For 20x2 the selling price per lamp will be $45.00 The desired net income in 20x2 is S274 000 would sales in units have to be in 20x2 to reach the profit goal? What 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 17 18 Pres.. 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? STE Sales in units (Round up to zero places units) {6.01) 25 5. 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 $#*# # 14 16.021 18 Pres... 15 16 17 READY Cut Copy - Format Painter Clipboard MS Sans Serif - 8.5 - AA = = = Wrap Text BTU. B S .A. EEEE Merge & Center - Font Alignment $ . % ; * Formatting Number Sty A 5. B 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) (6.03) 507 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? 51 65 . .. 2 3 4 5 6 7 8 9 10 11 32 13 14 15 16 17 READY 18 Pres.. FILE REVIEW VIEW 9. En Copy Paste HOME INSERT PAGE LAYOUT FORMULAS DATA X cut MS Sans Serif -8. 5 A A = = = Format Painter BIURA.EE Clipboard Font : XV film C EP Wrap Text Merge & Center - $ - % 808 Condition Formatting Alignment Number A1 A1 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? New selling price per lamp (Round up to two places. S######## {6.04)