only need questions 3-7

Page 2 s 1 125.000 c0 723 250 oc 3 401.750 00 onnhhe Expe Co msson Der @ S 15 175100 $101 750.00 3 2.000 00 1 500 00 3 so0 oo 145 250 00 I See The Light Projected Balance Sheet As of December 31, 20x1 Curment Aases S 34,710.00 67.500.00 Accouns Recevabie Raw Material 500 e s9 20 500 e $125 4.600.00 625.00 Electrical Sets Work in Process Finished Goods 86,790.00 $ 194 225.00 Total Curment Assets Fxed Assets S 20,000.00 6.800.00 Total Fxed Assets 13 200.00 S 207 425.00 Total Assets Current Lablises Accounts Payable S 54,000.00 54-00 Total Liablities Stocthoiders Equity $ 12.000.00 141,425.00 Common Stock Retained Earnings Total Stocikholders Equity Total Liabilities and Stockholders Equity 153 425.00 $ 207,425.00 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a lamp is calculated based upon the projected increases current costs. The present costs to manufacture one lamp are Figurines Electrical Sets Lamp Shade Direct Labor Variable Overhead Fixed Overhead $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lamps/hr.) 0.2250000 per lamp 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 5.00% 2. Labor costs are expected to increase by 6.00%. 3. Vanable Overhead is expected to increase by 4.50%. 4. Fixed Overhead is expected to increase to $285,000 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 $37,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 650%. 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. PART 2 Cost Volume Relationships Profit Planning analysis begin work on the budget for 202 and they have requested that you based on the following assumptions Note: Remember, round that we cannot up to the next complete unit. Furthuremore, to find the required sales in part of a lamp, therefore to find the number of units you have sell part of a lamp, therefore to ind the number of units and then multiply by the selling price per unit. dollars it may be easier to find the 1. For 20x2 the selling price per lamp will be $45.00. What is the projected ratio for each l sold? (5.01) Contribution Margin per unit (Round to seven places. S## ####00#) (5.02) Contribution Margin Ratio (Round to seven places.% is two of those places ss 2. For 20x2 the selling price per lamp will be $45.00. How many lamps must be sold to breakeven? 5.03) Breakeven sales in units (Round up to zero places. ## 3. For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $264,000. What would sales in units have to be in 20x2 to reach the (5.04) Sales units (Round up to zero places, ### ### units) 4 For 20x2 the 00% of seling price per lamp will e $45.00. The company would like to have a net income equal that is to be achieved, what would be the sales in units tn (6.01) Sales in units ( Round up to zero places. ## ## units) 5. If the company believed that it so that the new contribution could only sell 25,000 lamps, what would the new selling price have to be margin per unit is equal to last years contribution margin per unit? 6.02) New Selling Price (Round up to two places. S## ## ## ) 6. For 20x2 the selling price per lamp wil be $45.00. How many units must be sold to generated a net income of $260,0002 Sales in units (Round up to zero p (6.03) 7. If the company believes that the demand will be 27,500 units for the year. What selling price lamp rounded to two would generate a net income of $823,5007 New selling price per lamp (Round up to two places, se##### ## ) (6.04)