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:
	Lamp Kit:		$16.0000000	per lamp
	Direct Labor:		2.0000000	per lamp (4 lamps/hr.)
	Variable Overhead:		2.0000000	per lamp
	Fixed Overhead:		10.0000000	per lamp (based on normal capacity of 25,000 lamps)
	Cost per lamp:		$30.0000000	per lamp
Expected increases for 20x2
When calculating projected increases round to TWO ($0.00) decimal places.
	1. Material Costs are expected to increase by 6.00% .
	2. Labor Costs are expected to increase by 3.00%.
	3. Variable Overhead is expected to increase by 4.00%.
	4. Fixed Overhead is expected to increase to $275,000.
	5. Fixed Administrative expenses are expected to increase to $56,000.
	6. Variable selling expenses (measured on a per lamp basis) are expected to increase
	by 2.00%.
	7. Fixed selling expenses are expected to be $23,000 in 20x2.
	8. Variable administrative expenses (measured a per lamp basis) are expected to
	increase by 6.00%.
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.

I See The Light, Inc
Schedule of Projected Costs
Variable Manufacturing Unit Cost
	20x1 Cost	Projected Percent Increase	20x2 Cost Rounded to 2 Decimal Places
Lamp Kit				{4.01}
Labor				{4.02}
Variable Overhead				{4.03}
Projected Variable Manufacturing Cost Per Unit				{4.04}
Total Variable Cost Per Unit
	20x1 Cost	Projected Percent Increase	20x2 Cost Rounded to 2 Decimal Places
Variable Selling				{4.05}
Variable Administrative				{4.06}
Projected Variable Manufacturing Unit Cost				{4.04}
Projected Total Variable Cost Per Unit				{4.07}
Schedule of Fixed Costs
	20x1 Cost	Projected Percent Increase	20x2 Cost
Fixed Overhead				{4.08}
(normal capacity of _________ lamps @ __ )
Fixed Selling				{4.09}
Fixed Administrative				{4.10}
Projected Total Fixed Costs				{4.11}

ANSWER 4.01-4.11 with information given