I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales Cost of Goods Sold Gross Profit Selling Expenses: $1,125,000.00 723,250.00 $ 401,750.00 25,000 lamps $45.00 $28.93 $23,000.00 Fixed Variable(Commission per unit)@ $3.15 78,750.00 $101,750.00 Fixed Administrative Expenses $42,000.00 Variable 1,500.00 43.9000 145,250.00 Total Selling and Administrative Expenses Net Profit 256,500.00 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: 10 Figurines Electrical Sets Lamp Shade Direct Labor Variable Overhead:0.2250000 per lamp Fixed Overhead10.0000000 per lamp (based on normal capacity of 25,000 lamps) $9 2000000 per lamp 12 13 20 21 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lamps/hr) Cost per lamp: $28 9250000 per lamp 32 Expected increases for 20x2 33 When calculating projected increases round to SEVEN decimal places,50.0000000 34 35 43 45 1 Material Costs are expected to increase by 5.00% 2. Labor costs are expected to increase by 6 00% 3. Variable Overhead is expected to increase by 4 50% 4. Fixed Overhead is expected to increase to $285,000 5. Foxed Administrative expenses are expected to increase to $60,000 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 53 54 56 57 64 65 by 3.50% 7. Fixed selling expenses are expected to be $37,000 in 20x2