part 2 only need high lighted boxes

PART 2 Cost Volume Relationships - Profit Planning Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis based on the following assumptions. Note: Remember, that we cannot sel 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 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution margin ratio for each lamp sold? Contribution Margin per unit (Round to two places. $####) Contribution Margin Ratio (Round to four places. % is two of those places ##.##%) 2. For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2s $195,000 would sales in units have to be in 20x2 to reach the profit goal? What Breakeven sales in units (Since we cannot sel part of unit round up to the next unit it needed) 2. For 20x2 the seling price per lamp will be $45.00. The desired net income in 20x2 is $195,000. What would sales in units have to be in 20x2 to reach the profit goal? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit needed) 5.03) 3. For 20x2 the selling price per lamp will be $45.00. If the fored cost increase by $65,000.00 how many lamps must be sold to breakeven? Breakoven sales in units (Since we cannot se part of a unit round up to the next unit needed) (5.04) 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 Direct Labor Variable Overhead: Fored Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost pet 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 5.50%. 2. Labor Costs are expected to increase by 6.00%. 3. Variable Overhead is expected to increase by 5.00%. 4. Fixed Overhead is expected to increase to $285,000. 5. Fixed Administrative expenses are expected to increase to $62,000. 6. Variable seling expenses (measured on a per lamp basis) are expected to increase by 4.50%. 7. Fixed selling expenses are expected to be $35,000 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 Vanable Unit Cost per lamp 3- 20x2 Projected Fixed Costs 1 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 Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 @ $16.00 0 3000 @ $30.00 90,000.00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 + 13,200.00 213.410.00 $ 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 $ 12,000.00 147.410.00 159.410.00 $ 213.410.00 1 See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 750,000.00 $ 375,000.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) $3.00 Administrative Expenses: Fixed Variable @ $2.00 Total Seling and Administrative Expenses: Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92,000.00 190,000.00 $ 185,000.00 f 1 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 Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 $16.00 0 3000 @ $30.00 90,000.00 200,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assos $ 20,000.00 5,800.00 $ 13,200.00 213.410.00