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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
PART
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:
Expected increases for
When calculating projected increases round to TWO $ decimal places.
Material Costs are expected to increase by
Labor Costs are expected to increase by
Variable Overhead is expected to increase by
Fixed Overhead is expected to increase to $
Fixed Administrative expenses are expected to increase to $
Variable selling expenses measured on a per lamp basis are expected to increase
by
Fixed selling expenses are expected to be $ in
Variable administrative expenses measured a per lamp basis are expected to
increase by
On the following schedule develop the following figures:
x Projected Variable Manufacturing Unit Cost of a lamp.
x Projected Variable Unit Cost per lamp.
x Projected Fixed Costs.
PART
Cost Volume Relationships
Profit Planning
Big is about to begin work on the budget for and they have requested that you prepare an analysis
based on the following assumptions.
Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round
up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the
number of units and then multiply by the selling price per unit
For the selling price per lamp will be $ What is the projected contribution margin and contribution
Contribution Margin Ratio Round to four places, is two of those places ####
For the selling price per lamp will be $ The desired net income in is $ What
would sales in units have to be in to reach the profit goal?
For the selling price per lamp will be $ If the fixed cost increase by $ how many lamps
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