Projected Income Statement For the Period Ending December 31, 20x1 $45.00 $28.93 $ 1,125,000.00 723,250.00 $ 401,750.00 Sales 25,000 lamps @ Cost of Goods Sold @ Gross Profit Selling Expenses: Fixed Variable (Commission per unit) Administrative Expenses Total Selling and Administrative Expenses: Net Profit $3.15 $ 23,000.00 78,750.00 $ 101,750.00 41,250.00 143,000.00 258,750.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Ourrent Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ 500 @ $9.20 $1.25 4,600.00 625.00 3000 @ $28.9250 $ 86,775.00 194,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 13,200.00 207,410.00 $ Current Liabilities Accounts Payable Total Liabilities $ $ 54,000.00 54,000.00 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ 500 @ 0 3000 @ $9.20 $1.25 4,600.00 625.00 $28.9250 $ 86,775,00 194,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 $ 13.200.00 207.410.00 $ $ 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 $ 12,000.00 141,410.00 $ 153,410.00 207,410.00 ---------- - - - - - - - - - - - - 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: Figurines Electrical Sets Lamp Shade Direct Labor: Variable Overhead: Fixed Overhead: $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lamps/hr.) 0.2250000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places,$0.0000000. 1. Material Costs are expected to increase by 2.50%. 2. Labor Costs are expected to increase by 2.50%. 3. Variable Overhead is expected to increase by 3.50%. 4. Fixed Overhead is expected to increase to $295,000. 5. Fixed selling expenses are expected to be $31,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.50%. 7. Fixed Administrative expenses are expected to increase by $2,000. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 3.50%. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. 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. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.50%. 7. Fixed Administrative expenses are expected to increase by $2,000. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 3.50%. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. 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. Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 2.50% 20x2 Cost Rounded to 7 Decimal Places 2.50% Figurines Electrical Sets Lamp Shade Labor Variable Overhead $9.4300000 $1.2812500 $6.1500000 $2.3062500 $0.2328750 2.50% 2.50% 3.50% {4.01) {4.02) {4.03) {4.04) (4.05) 2.25 0.225 Projected Variable Manufacturing Cost Per Unit 18.925 $19.0600000 {4.06) Total Variable Cost Per Unit 20x1 Cost 20x2 Cost Rounded to 7 Decimal Places 3.15 Projected Percent Increase 3.50% 3.50% 1 Variable Selling Variable Administrative 20x1 Variable Administrative 20x2 3.2602500 0.0300000 {4.07) {4.08) {4.09) 0 .0310500 18.925 {4.06) Projected Variable Manufacturing Unit Cost Projected Total Variable Cost Per Unit 19.06 22.3513000 22.135 L Schedule of Fixed Costs 2041 Cost Practed Schedule of Fixed Costs 20x1 Cost Projected Increase 20x2 Cost Rounded to 2 Decimal Places $ 295,000.00 250000 {4.11) lamps @_) $ 31,000.00 Fixed Overhead (normal capacity of ___ Fixed Selling Fixed Administrative 20x1 Fixed Administrative 20x2 Projected Total Fixed Costs 0.92 12.14 {4.12) {4.13) {4.14) {4.15) $ 43,250.00