Project #2 Sales Projections in Units January February March April May 13.402 45,819 44,164 53,722 52,482 Projected Sales Price/Unit $ 450.00 Monthly Projected Selling & Administrative Expenses Variable Cost/Unit $16.00 Fixed Costs $5,519 Production: Desired Ending Inventory Beginning Inventory (new business) 59.0% 0 64.6% Materials Desired Ending Inventory Number of Materials per Unit Projected Cost/Material Unit Beginning Inventory (new business) 11.0 $23.00 0 Direct Labor Time per Unit (in hours) Cost per Hour 1.00 $21.00 Manufacturing Overhead Variable Cost/Unit $5.00 Fixed Costs $5,625 PROJECTED INCOME STATEMENT January February March Sales in Units Sales Revenue Cost of Goods Sold: Gross Profit (Margin) Selling and Administrative (Operating) Expenses Operating Income PRODUCT COST PER UNIT Item Amount Direct Materials Direct Labor Manufacturing Overhead Total Unit Cost MANUFACTURING OVERHEAD BUDGET January February March Production in Units Variable OH Rate/Unit Anticipated VOH Costs Fixed OH Costs Total Anticipated OH Costs Predetermined OH Rate Total Estimated OH Costs (for the quarter) per DLH Total Estimated DLHs (for the quarter) MOH per Unit: Predetermined MOH rate DLHs per Unit MOH per Unit of Product DIRECT LABOR BUDGET January February March Number of Units Produced Direct Labor Hours/Unit Total Direct Labor Hours Needed Cost/Direct Labor Hour Total Direct Labor Cost Direct Labor Hours/Unit Cost/Direct Labor Hour Cost of Direct Labor per Product MATERIALS REQUIREMENTS BUDGET | January February March April Units to be Produced Material/Unit Total Production Need Desired Ending Inventory Total Materials Needed Beginning Inventory Total Materials Needed to be Purchased Cost per Unit of Material Total Material Cost Material/unit Cost per Unit of Material Cost of Material per Product PRODUCTION BUDGET January February March April Sales in Units Desired Ending Inventory Total Units Needed Beginning Inventory Total Production in Units Total Production in Units T SELLING & ADMINISTRATIVE EXPENSE BUDGET January February March Sales in Units Variable S&A Rate/Unit Anticipated Variable Costs Fixed S&A Costs Total Anticipated Selling & Administrative Costs SALES BUDGET January February March April Projected Sales in Units Selling Price per Unit |Anticipated Sales Dollars SENSITIVITY ANALYSIS (Print and submit AFTER submitting budget online) Situation #1: What would the effect be on the Projected Operating Income if you decreased your selling price by 7% to match a price change by one of your competitors? January February March Would you recommend this action? Yes No Reasoning/Rationale: Situation #2 What would the effect be on the Projected Operating Income if you decided to improve your product's quality by buying a raw material that cost 15% more than your current material? January February March Would you recommend this action? Yes No Reasoning/Rationale: Situation #3 What would the effect be on the Projected Operating Income if you decided to remove executive bonus' and decrease your Selling and Administrative costs by 6%. January February March Would you recommend this action? Yes No Reasoning/Rationale