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 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: 289250000 per lamp= Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places, $o.o000000. 1 Material Costs are expected to increase by 5.00% 2. Labor Costs are expected to increase by 6.00%. 3 Variable 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 3.5096. 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 6.50% 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. brittany ciots 4. For 20x2 the selling price to 29 00% of sales per lamp will be $45.00. The company would like to have a If that is to be achieved, what would be the sales in units in 20x2? net income equal Sales in units (Round up to zero places. ###,### units) 6 01) 5 If the company believed that it could only sel so that the new contribution margin per unit is equal to last year's contribution margin per unit? believed that it could only sell 25,000 lamps, what would the new solling price have to be New Selling Price (Round up to two places, $### ### ## ) 6.02) 20x2 the selling price per lamp will be $45.00. How many units must be sold to generated a net income of $260,0002 6.03) Sales in units (Round up to zero places: ###### units 7. If the company believes that the demand will be 27,500 units for the year. What selling price would te a net income of $823,500? per lamp, rounded to two 6.04) New selling price per lamp (Round up to two places. S###,##### )