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 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 $ 20,000.00 6,800.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 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 10 12 D I 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 H B 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 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? 1 2 3 54 58 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) {6.03) If for 20x2 the selling price per lamp is decreased to $42.00 a unit how many lamps must be sold to breakeven? 60 61 62 66 7 67 68 69 70 74 75 76 77 78 79 80 81 82 33 84 85 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit i needed {6.04