Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable \$ 34,710.00 Inventory Raw Material Lamp Kits Work in Process @ $16.00 Finished Goods 3000@$30.00 Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 13,200.00$213,410.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 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 202 When calculating projected increases round to TWO ($0.00) decimal places. 1. Material Costs are expected to increase by 2.00%. 2. Labor Costs are expected to increase by 4.00%. 3. Variable Overhead is expected to increase by 2.00% 4. Fixed Overhead is expected to increase to $260,000. 5. Fixed Administrative expenses are I increase to $56,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 5.00% 7. Fixed selling expenses are expected to be $29,000 in 202 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. 202 Projected Variable Unit Cost per lamp. 3. 202 Projected Fixed Costs. Schedule of Projected Costs Profit Planning Big Al is about to begin work on the budget for 202 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 seling price per unit. For 202 the selling price per lamp wil be $45.00. What is the projected contribution margin and contribution marain ratio for each lamo sold? Contribution Margin Ratio (Round to four places, % is two of those places min\%) For 202 the seling price per lamp will be $45,00. The desired net income in 202 is $195,000. What would sales in units have to be in 20x2 to reach the orofit aoal? orcakeven sacos mi units (once we cannot sen part or a unu rouna up to ure nem unt n needed) For 20x2 the seling price per lamp wit be $45.00. If the fixed cost increase by $30,000.00 how many lamps mist he cnla th hreakenven? Breakeven sales in units (Sice we carnot sel part of a unit round up to the next und if needed) For 202 the seling price per lamp wili be $45.00. If the variable cost increase by $3.00 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sel part of a unt round up to the next unit if needed) For 202 the seling price per lamp wil be $4500. If the variable cost decreased by $300 a unit how many lamps must be sold to breakeven? If for 202 the seling price per lamp is increased to $48.00 a unt how many lamps must be sold If for 202 the selling price per lamp is decreased to $4200 a unit how many lamps must be sold
