Projected Income Statement
For the Period Ending December 31, 20x1
	Sales			25,000 lamps	@ $45.00			$1,125,000.00
	Cost of Goods Sold				@ $30.00			750,000.00
	Gross Profit							$ 375,000.00
	Selling Expenses:
		Fixed				$23,000.00
		Variable		(Commission per unit)	@ $3.00	75,000.00	$ 98,000.00
	Administrative Expenses:
		Fixed				$42,000.00
		Variable			@ $2.00	50,000.00	92,000.00
	Total Selling and Administrative Expenses:							190,000.00
	Net Profit							$ 185,000.00

Projected Balance Sheet
As of December 31, 20x1
	Current Assets
		Cash						$ 34,710.00
		Accounts Receivable						67,500.00
		Inventory
			Raw Material
			Lamp Kits		500	@ $16.00		8,000.00
			Work in Process		0			-
			Finished Goods		3000	@ $30.00		90,000.00
		Total Current Assets						$ 200,210.00
	Fixed Assets
		Equipment					$ 20,000.00
		Accumulated Depreciation					6,800.00
		Total Fixed Assets						13,200.00
		Total Assets						$ 213,410.00
	Current Liabilities
		Accounts Payable						$ 54,000.00
		Total Liabilities						$ 54,000.00
	Stockholder's Equity
		Common Stock					$ 12,000.00
		Retained Earnings					147,410.00
		Total Stockholder's Equity						159,410.00
		Total Liabilities and Stockholder's Equity						$ 213,410.00

Cost Volume Relationships - Profit Planning Big Al is about to beyn wuk on the budget tor 2Ux2 and they have requested that you prepare an analysis based on the folowing assumptbions Note: Remember, that we cannot sel pat of a lamp, theree to End the number of units you have to round up to the next complete unt. Futhuremore, to fnd the req ed sales in dolars i number uf uits and then muiply by the seling pice per unit t may be easier to fnd the 1. For 20x2 the seinpice per lamp wbe 5.00. Wat is theprujected contributiona and contibution may-n rabio fhw each lamp sok? Contribution Mijn per unt (Round to two places, 1501 Contribution Maryn Ratio (Round to fur places% is two of those places ##%) [5.02 2. For 202 the seling price per lamp wlbe 545.00. The desired net income in 2his $192,500 at wwd sales in unis haveoi 2l2 to reach the prust goal? Ereakeven sales in units (Since we cantse pat ofauntround up to The neneeded) 5.03 3. For 202 the seling price per lamp walbe 545.00. the Sxed cost increase by $60,000.00 how many lamps must be sold to breakeven? Breakeven sales in units (Since we canotsel patofautround uptohe nexneeded) 1504