I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales Cost of Goods Sold Gross Profit 25,000 lamps @ $45.00 @ $30.00 $ 1,125,000.00 750,000.00 $ 375,000.00 Selling Expenses: Fixed $ 23,000.00 Variable (Commission per unit) @ $3.00 75,000.00 $ 98,000.00 Administrative Expenses: Fixed Variable @ $2.00 $ 42,000.00 50,000.00 92,000.00 Total Selling and Administrative Expenses: Net Profit 190,000.00 $ 185,000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 500 @ $16.00 0 3000 @ $30.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 34,710.00 67,500.00 8,000.00 90,000.00 $ 200,210.00 $ 20,000.00 6,800.00 $ $ 12,000.00 13,200.00 213,410.00 $ 54,000.00 $ 54,000.00 147,410.00 159,410.00 $ 213,410.00 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: Lamp Kit: Direct Labor: Variable Overhead: Fixed Overhead: Cost per lamp: Expected increases for 20x2 $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) $30.0000000 per lamp When calculating projected increases round to TWO ($0.00) decimal places. 1. Material Costs are expected to increase by 4.00%. 2. Labor Costs are expected to increase by 5.00%. 3. Variable Overhead is expected to increase by 4.50%. 4. Fixed Overhead is expected to increase to $275,000. 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 $29,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 5.50%. 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. 4. For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $5.00 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) 5. For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $5.00 a unit how many lamps must be sold to breakeven? 6. {6.01} Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) (6.02) If for 20x2 the selling price per lamp is increased to $50.00 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) (6.03) 7. If for 20x2 the selling price per lamp is decreased to $40.00 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) {6.04}