I See The Light Projected Income Statement For the Period Ending December 31, 20x1 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations $ $45.00 $30.00 1.125,000.00 750,000.00 375,000.00 $ Sales 25,000 lamps @ Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable (Commission per unit) Administrative Expenses: Fixed Variable @ Total Selling and Administrative Expenses: Net Profit $3.00 $ 23,000.00 75,000.00 $ 98,000.00 $2.00 $ 42,000.00 50,000.00 92,000.00 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: 190,000.00 185,000.00 $ Lamp Kit: Direct Labor Variable Overhead: Fixed Overhead: $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) Cost per lamp: $30.0000000 per lamp I See The Light Projected Balance Sheet As of December 31, 20x1 Expected increases for 20x2 When calculating projected increases round to TWO ($0.00) decimal places. 1. Material Costs are expected to increase by 6.50%. 34,710.00 67,500.00 2. Labor Costs are expected to increase by 6.50%. Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets $16.00 8,000.00 500 @ 0 3000 @ 3. Variable Overhead is expected to increase by 3.50%. $30.00 $ 90,000.00 200,210.00 4. Fixed Overhead is expected to increase to $270,000. Foxed Assets 5. Fixed Administrative expenses are expected to increase to $44,000. Equipment $ 20,000.00 6,800.00 Accumulated Depreciation Total Fixed Assets Total Assets 13,200.00 213,410.00 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 $37,000 in 20x2. $ $ 54,000.00 54,000.00 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 6.00%. 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 On the following schedule develop the following figures: $ 159.410.00 213,410.00 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp 3- 20x2 Projected Fixed Costs