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 Total Selling and Administrative Expenses: Net Profit $ 23,000.00 78.750.00 $ 101,750.00 41.250.00 143,000.00 258,750.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34.7.10.00 67 500.00 Current Assets Cash Accounts Receivablo Inventory Raw Material Figurines Electrical Sots Work in ProcOSS Finished Goods Total Current Assets 500 DS9 20 500 $125 4,600,00 625.00 3000 $28.9250 86,775.00 194 210.00 S Total Current Assets 194,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13,200.00 $ 207,410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholders Equity $ 12,000.00 141.410.00 S 153.410.00 207.410.00 17 The projected cost of a lamp is calculated based upon the projected increases or decreases to 18 current costs. The present costs to manufacture one lamp are: 19 20 Figurines $9.2000000 per lamp 21 Electrical Sets 1.2500000 per lamp 31 Lamp Shade 6.0000000 per lamp 32 Direct Labor 2.2500000 per lamp (4 lamps/hr.) Variable Overhead: 0.2250000 per lamp 34 Fbed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 35 45 Cost per lamp: $28.9250000 per lamp 46 47 Expected increases for 20x2 48 When calculating projected increases round to SEVEN decimal places, $0.0000000 49 33 1. Material Costs are expected to increase by 5.50% 2. Labor Costs are expected to increase by 5.50%. 3. Vanable Overhead is expected to increase by 3.00% 4 Fixed Overhead is expected to increase to $275,000. 5. Fixed solling expenses are expected to be $37.000 in 20x2. 59 80 61 62 63 73 74 75 76 77 87 88 89 90 91 01 02 03 04 05 15 18 12 6. Vanablo selling expenses (measured on a per lamp basis) are expected to increase by 3.00% 7 Fixed Administrative expenses are expected to increase by $2,000 The total administrative expenses for 20x0 wore $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expensos (measured on a per lamp basis) are expected to increase by 2.00%. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variablo administrative expenso per lamp 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