I See The Light Projected Income Statement For the Period Ending December 31, 20x1 5 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 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 $125 0 3000 $28.9250 86,775 00 $ 194,210.00 $ 20,000.00 6.800.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 13.200.00 $ 207 410.00 54,000.00 54.000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 141.410.00 153,410.00 207,410 00 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations 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: Figurines $9.2000000 per lamp Electrical Sets 12500000 per lamp Lamp Shade 6.0000000 per lamp Direct Labor. 2.2500000 per lamp (4 lamps/hr.) Variable Overhead 0.2250000 per lamp Fixed Overhead 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places $0.0000000 1. Material Costs are expected to increase by 5,60% 2. Labor Costs are expected to increase by 5,60% 3. Variable Overhead is expected to increase by 3.00% 4. Fixed Overhead is expected to increase to $275,000 5. Fixed selling expenses are expected to be $37,000 in 2012 6. Variable 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 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total foved administrative expense 8. Variable administrative expenses (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 variable administrative expense 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 1 See The Light, Inc Schedule of Projected Costs Vanable Manufacturing unitacos! 20x1 Cost Projected Porcent Increase 2012 Cost Rounded to 7 Decimal Places Figurines Electrical Sets Lamp Shade Labor Variable Overhead (401) (402) [4.03) (4.04 (405) Projected Variable Manufacturing Cost Per Unit (4.00) Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 7 Decimal Places Variable Seling Variable Administrative 20x1 Variable Administrative 20-2 (407) (408) (409) Projected Variable Manufacturing Unit Cost Projected Total Variable Cost Per Unit (406) (410) Schedule of Fived. Costs 2041 Cost Projected Incrosso 20/2 Cost Rounded to 2 Decimal Places (411) Lamps @_) Fixed Overhead (normal capacity of Fixed Seling Fixed Administrative 20x1 Fixed Administrative 20x2 Projected Total Fixed Costs (412) (413) (414) (4.15) 26