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 Seling Expenses: Fbced Variable (Commission per unit) @ $3.15 Administrative Expenses Total Selling and Administrative Expenses: Net Profit $ 23,000.00 78,750.00 $ 101,750.00 40.750.00 142,500.00 $ 259, 250.00 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 Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 4.600.00 625.00 500 @ $9.20 500 @ $1.25 0 3000 @ $28.9250 86,775.00 194.210.00 $ 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 Cument Llabetes Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 141,410.00 153,410.00 207 410.00 8. The projected cost of a lamp is calculated based upon the projected increases or decreases to 9 current costs. The present costs to manufacture one lamp are: 10 11 Figurines $9.2000000' per lamp 12 Electrical Sets 1.2500000 per lamp 13 Lamp Shade 6.0000000 per lamp 20 Direct Labor: 2.2500000 per lamp (4 lamps/hr.) 21 Variable Overhead: 0.2250000 per lamp Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 23 24 Cost per lamp: $28.9250000 per lamp 31 32 Expected increases for 20x2 33 When calculating projected increases round to SEVEN decimal places. $0.0000000. 34 22 35 42 43 1. Material Costs are expected to increase by 3.50% 2. Labor Costs are expected to increase by 3.00% 3. Vanable Overhead is expected to increase by 2.00%. 4. Fixed Overhead is expected to increase to $270,000. 45 46 53 54 55 56 57 64 65 66 67 68 75 76 77 78 79 5. Fixed selling expenses are expected to be $29,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 2.50% 7 Fixed Administrative expenses are expected to increase by $4,000. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 2.50%. The total administrative expenses for 20x0 were $40.625.00, when 22.500 units were sold. Use the High-Low method to calitate 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 2.50%. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the variable administrative axpense 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. I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost 20x2 Cost Rounded to 7 Decimal Places 9.2 1.25 Figurines Electrical Sets Lamp Shade Labor Variable Overhead Projected Porcent Increase 3.50% 3.50% 3.50% 3.00% 2.00% 6 $9.5220000 $1.2937500 $6.2100000 $2.3175000 $0.2295000 [4.01) {4.02) (4.03) (4.04) {4.05) 2.25 0.225 Projected Variable Manufacturing Cost Per Unit 18.925 $19.5727500 (4.06) Total Variable Cost Per Unit 20x1 Cost 20x2 Cost Rounded to 7 Decimal Places Projected Percent Increase 2.50% 2.50% 3.2287500 Variable Selling 2 Variable Administrative 20x1 Variable Administrative 20x2 3.15 0.0400000 {4.07) {4.08) {4.09) 1 2 Projected Variable Manufacturing Unit Cost 3 Projected Total Variable Cost Per Unit [4.06) [4.10) 2 73 74 Schedule of Fixed Costs 20x1 Cost Projected Increase 2012 Cost Rounded to 2 Decimal Places 270,000.00 (4.11) lamps ) 29,000.00 75 76 Fixed Overhead 84 (normal capacity of 85 Fixed Selling 86 Fixed Administrative 20x1 87 Fixed Administrative 20x2 88 Projected Total Fixed Costs 96 97 (4.12) (4.13) (4.14) (4.15) 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 Seling Expenses: Fbced Variable (Commission per unit) @ $3.15 Administrative Expenses Total Selling and Administrative Expenses: Net Profit $ 23,000.00 78,750.00 $ 101,750.00 40.750.00 142,500.00 $ 259, 250.00 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 Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 4.600.00 625.00 500 @ $9.20 500 @ $1.25 0 3000 @ $28.9250 86,775.00 194.210.00 $ 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 Cument Llabetes Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 141,410.00 153,410.00 207 410.00 8. The projected cost of a lamp is calculated based upon the projected increases or decreases to 9 current costs. The present costs to manufacture one lamp are: 10 11 Figurines $9.2000000' per lamp 12 Electrical Sets 1.2500000 per lamp 13 Lamp Shade 6.0000000 per lamp 20 Direct Labor: 2.2500000 per lamp (4 lamps/hr.) 21 Variable Overhead: 0.2250000 per lamp Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 23 24 Cost per lamp: $28.9250000 per lamp 31 32 Expected increases for 20x2 33 When calculating projected increases round to SEVEN decimal places. $0.0000000. 34 22 35 42 43 1. Material Costs are expected to increase by 3.50% 2. Labor Costs are expected to increase by 3.00% 3. Vanable Overhead is expected to increase by 2.00%. 4. Fixed Overhead is expected to increase to $270,000. 45 46 53 54 55 56 57 64 65 66 67 68 75 76 77 78 79 5. Fixed selling expenses are expected to be $29,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 2.50% 7 Fixed Administrative expenses are expected to increase by $4,000. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 2.50%. The total administrative expenses for 20x0 were $40.625.00, when 22.500 units were sold. Use the High-Low method to calitate 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 2.50%. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the variable administrative axpense 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. I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost 20x2 Cost Rounded to 7 Decimal Places 9.2 1.25 Figurines Electrical Sets Lamp Shade Labor Variable Overhead Projected Porcent Increase 3.50% 3.50% 3.50% 3.00% 2.00% 6 $9.5220000 $1.2937500 $6.2100000 $2.3175000 $0.2295000 [4.01) {4.02) (4.03) (4.04) {4.05) 2.25 0.225 Projected Variable Manufacturing Cost Per Unit 18.925 $19.5727500 (4.06) Total Variable Cost Per Unit 20x1 Cost 20x2 Cost Rounded to 7 Decimal Places Projected Percent Increase 2.50% 2.50% 3.2287500 Variable Selling 2 Variable Administrative 20x1 Variable Administrative 20x2 3.15 0.0400000 {4.07) {4.08) {4.09) 1 2 Projected Variable Manufacturing Unit Cost 3 Projected Total Variable Cost Per Unit [4.06) [4.10) 2 73 74 Schedule of Fixed Costs 20x1 Cost Projected Increase 2012 Cost Rounded to 2 Decimal Places 270,000.00 (4.11) lamps ) 29,000.00 75 76 Fixed Overhead 84 (normal capacity of 85 Fixed Selling 86 Fixed Administrative 20x1 87 Fixed Administrative 20x2 88 Projected Total Fixed Costs 96 97 (4.12) (4.13) (4.14) (4.15)