The first two pages is the information I have to work with and the 3rd page is the boxes I have to fill in for I See The Light project. I'm not really sure how to work this out? Thanks.
I 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 Selling 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 I 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 500 @ $16.00 3000 @ $30.00 8,000.00 90,000.00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fbced 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 Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12.000.00 147.410.00 159.410.00 3 213.410.00 2. B PART 1 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: Lamp Kit: Direct Labor Variable Overhead: Fixed 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 per lamp: $30.0000000 per lamp Expected increases for 20x2 When calculating projected increases round to TWO ($0.00) decimal glaces. 1. Material Costs are expected to increase by 4.50% 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 $295,000. 5. Fixed Administrative expenses are expected to increase to $46,000 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 2.50% 7. Fixed selling expenses are expected to be $23,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 5.00% 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. See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Lamp Kit Labor Variable Overhead {4.01) (4.02) (4.03) Projected Variable Manufacturing Cost Per Unit 4.04) Total Variable Cost Per Unt 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Variable Selling Variable Administrative Projected Variable Manufacturing Unit Cost (4.05) (4.06) (4.04) Projected Total Variable Cost Per Unit (4.07) Schedule of Fixed Costs 20x1 Cost 20x2 Cost Projected Percent Increase (4.08) lamps 7 Fixed Overhead (normal capacity of 19 Fixed Selling 1 Fixed Administrative (4.09) (4.10) 12 13 Projected Total Fixed Costs (4.11)