H B C D 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) 3 4 Cost per lamp $30.0000000 per lamp 1 -2 Expected increases for 20x2 33 When calculating projected increases round to TWO ($0.00) decimal places. 34 1. Material Costs are expected to increase by 2.00% 35 42 43 44 45 2. Labor Costs are expected to increase by 6.50%. 3. Variable Overhead is expected to increase by 4.50%. 46 53 by 5.00% 4. Fixed Overhead is expected to increase to $280,000 54 55 5. Fixed Administrative expenses are expected to increase to $46,000 56 57 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 64 65 66 7. Fixed selling expenses are expected to be $37,000 in 20x2. 67 68 8. Variable administrative expenses (measured a per lamp basis) are expected to 75 increase by 6.00% 76 77 On the following schedule develop the following figures: 78 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 79 86 2. 20x2 Projected Variable Unit Cost per lamp. 87 88 3. 20x2 Projected Fixed Costs. 89 90 07 anable Manufacturing Unit Cost 20x1 Cost 20x2 Cost Rounded to 2 Decimal Places 16 Projected Percent Increase 2% 6.50% 4.50% amp Kit 2 $16.32 $2.13 $2.09 {4.01) {4.02) {4.03) Labor Variable Overhead 2 20 $20.54 {4.04) Projected Variable Manufacturing Cost Per Unit Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 5% 20x2 Cost Rounded to 2 Decimal Places 6.50% {4.05) {4.06) {4.04) 5 Variable Selling 6 Variable Administrative 27 Projected Variable Manufacturing Unit Cost 28 30 31 Projected Total Variable Cost Per Unit 32 33 34 36 Schedule of Fixed Costs {4.07) 20x1 Cost 20x2 Cost Projected Percent Increase {4.08) lamps @_) 37 38 Fixed Overhead 39 (normal capacity of 40 Fixed Selling 42 Fixed Administrative 43 44 Projected Total Fixed Costs 23 4 (4.09) (410) {411) 10 19 11 12 14 7 8 9 15 UR B C D E F G H Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis 1 based on the following assumptions 12 Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round 15 up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the 16 number of units and then multiply by the selling price per unit 17 18 1 For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution 19 margin ratio for each lamp sold? 22 23 24 25 26 29 30 31 32 Contribution Margin per unit (Round to two places, $44##) 33 36 Contribution Margin Ratio (Round to four places, % is two of those places #9.48%) 37 38 39 2 For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $195,000 What 40 would sales in units have to be in 20x2 to reach the profit goal? 43 (501) G (5.02) (5.03) 45 46 47 50 51 52 53 54 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 57 58 59 60 61 3. For 20x2 the selling price per lamp will be $45.00 If the fixed cost increase by $30,000.00 how many tamps 64 must be sold to breakeven? 65 4 5 10 12 14 13 B 2. For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $195,000. What would sales in units have to be in 20x2 to reach the profit goal? 3 4 5 -6 27 50 51 52 53 54 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 57 58 59 60 61 3. For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $30,000.00 how many lamps 64 must be sold to breakeven? G 65 C 66 67 68 69 70 71 72 73 74 75 76 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 77 78 79 E 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? {6.01) 1 2 26 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 $3.00 a unit how many lamps must be sold to breakeven? (602) 28 5 29 30 34 35 36 37 38 42 43 44 6 45 45 50 51 52 53 Breakeven sales in units (Since we cannot sell part of a unit round up to me next unit if needed If for 20x2 the selling price per lamp is increased to $4800 a unit how many lamps must be sold to breakeven? (603) Breakeven sales in units (Since we cannot sell part of a unit round up to the next unti needed 58 59 60 61 52 667 67 68 19 for 20x2 the selling price per lamp is decreased to $42.00 unit how many lamps must be sold to breakeven? 11 15 10 E F D B must be sold to breakeven? {6 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) If for 20x2 the selling price per lamp is increased to $48.00 a unit how many lamps must be sold to breakeven? {6.0 1 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 56 7 If for 20x2 the selling price per lamp is decreased to $42.00 a unit how many lamps must be sold to breakeven? 68 69 70 74 75 76 {6.04 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 78 79 80 81 82 83 84 85 86 87 H B C D 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) 3 4 Cost per lamp $30.0000000 per lamp 1 -2 Expected increases for 20x2 33 When calculating projected increases round to TWO ($0.00) decimal places. 34 1. Material Costs are expected to increase by 2.00% 35 42 43 44 45 2. Labor Costs are expected to increase by 6.50%. 3. Variable Overhead is expected to increase by 4.50%. 46 53 by 5.00% 4. Fixed Overhead is expected to increase to $280,000 54 55 5. Fixed Administrative expenses are expected to increase to $46,000 56 57 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 64 65 66 7. Fixed selling expenses are expected to be $37,000 in 20x2. 67 68 8. Variable administrative expenses (measured a per lamp basis) are expected to 75 increase by 6.00% 76 77 On the following schedule develop the following figures: 78 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 79 86 2. 20x2 Projected Variable Unit Cost per lamp. 87 88 3. 20x2 Projected Fixed Costs. 89 90 07 anable Manufacturing Unit Cost 20x1 Cost 20x2 Cost Rounded to 2 Decimal Places 16 Projected Percent Increase 2% 6.50% 4.50% amp Kit 2 $16.32 $2.13 $2.09 {4.01) {4.02) {4.03) Labor Variable Overhead 2 20 $20.54 {4.04) Projected Variable Manufacturing Cost Per Unit Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 5% 20x2 Cost Rounded to 2 Decimal Places 6.50% {4.05) {4.06) {4.04) 5 Variable Selling 6 Variable Administrative 27 Projected Variable Manufacturing Unit Cost 28 30 31 Projected Total Variable Cost Per Unit 32 33 34 36 Schedule of Fixed Costs {4.07) 20x1 Cost 20x2 Cost Projected Percent Increase {4.08) lamps @_) 37 38 Fixed Overhead 39 (normal capacity of 40 Fixed Selling 42 Fixed Administrative 43 44 Projected Total Fixed Costs 23 4 (4.09) (410) {411) 10 19 11 12 14 7 8 9 15 UR B C D E F G H Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis 1 based on the following assumptions 12 Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round 15 up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the 16 number of units and then multiply by the selling price per unit 17 18 1 For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution 19 margin ratio for each lamp sold? 22 23 24 25 26 29 30 31 32 Contribution Margin per unit (Round to two places, $44##) 33 36 Contribution Margin Ratio (Round to four places, % is two of those places #9.48%) 37 38 39 2 For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $195,000 What 40 would sales in units have to be in 20x2 to reach the profit goal? 43 (501) G (5.02) (5.03) 45 46 47 50 51 52 53 54 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 57 58 59 60 61 3. For 20x2 the selling price per lamp will be $45.00 If the fixed cost increase by $30,000.00 how many tamps 64 must be sold to breakeven? 65 4 5 10 12 14 13 B 2. For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $195,000. What would sales in units have to be in 20x2 to reach the profit goal? 3 4 5 -6 27 50 51 52 53 54 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 57 58 59 60 61 3. For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $30,000.00 how many lamps 64 must be sold to breakeven? G 65 C 66 67 68 69 70 71 72 73 74 75 76 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 77 78 79 E 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? {6.01) 1 2 26 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 $3.00 a unit how many lamps must be sold to breakeven? (602) 28 5 29 30 34 35 36 37 38 42 43 44 6 45 45 50 51 52 53 Breakeven sales in units (Since we cannot sell part of a unit round up to me next unit if needed If for 20x2 the selling price per lamp is increased to $4800 a unit how many lamps must be sold to breakeven? (603) Breakeven sales in units (Since we cannot sell part of a unit round up to the next unti needed 58 59 60 61 52 667 67 68 19 for 20x2 the selling price per lamp is decreased to $42.00 unit how many lamps must be sold to breakeven? 11 15 10 E F D B must be sold to breakeven? {6 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) If for 20x2 the selling price per lamp is increased to $48.00 a unit how many lamps must be sold to breakeven? {6.0 1 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 56 7 If for 20x2 the selling price per lamp is decreased to $42.00 a unit how many lamps must be sold to breakeven? 68 69 70 74 75 76 {6.04 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 78 79 80 81 82 83 84 85 86 87