Attached is a project I'm working on and I'm stuck at a crucial point. I need help figuring out what the Planned sales, Desired ending inventory of finished goods as well as the Beginning inventory are in order to calculate the total production. The part in question is Part 3, under the production budget.

EK8245 I SEE THE LIGHT Eric , when you are ready to have your work graded you will upload this file EK8245.xls, to the same screen that the project was downloaded from: www.cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. There are alternative methods of solving problems. To insure similar answers and to guarantee that you are graded correctly please follow the instructions as to rounding. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. F725 1401011 or EK8245.xlsx, Elf Village Productions Legal Pad 50 Sheet Building Blocks of Accounting .. A Financial Perspective FAQ Page 1 FAQ 01 My file used to upload, why is it not uploading? Answer: Sometimes we unknowing add items to a workbook that inhibits the upload process. The conversion to an earlier version somehow clean the files and they then upload without problem. If the problem continue simple send your file as an attachment with your username and password...friedman@cybertext.com Windows Operating System Select File Select Save As Select Save As Type: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select File Select Close Select File Open (open the .xls file) Select Save As Select Format: Select Excel Workbook (*.xlsx) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select File Select Close Upload the file at cybertext.com Apple Operating System Select Select Select Select Select Select Select Select File Select Select Select Select Select Select Select Select File Open (open the .xls file) MF1234.xlsx Save As Format: Microsoft 5.0/95 Workbook (*.xls) Save Continue or Yes if prompted or if it indicates that there is limited memory. File Close Save As Format: Excel Workbook (*.xlsx) Save Continue or Yes if prompted or if it indicates that there is limited memory. File Close Upload the file at cybertext.com Excel 5.0/95 Workbook (.xls) Elf Village Productions Legal Pad 50 Sheet Building Blocks of Accounting .. A Financial Perspective FAQ FAQ 02 Page 2 What is the difference between rounding a number and rounding up a number? Given: Cost of a Taxi 100 Number of Passengers Find 3 passengers Cost per Passenger Without rounding 33.3333 =F71/F72 Rounding to two decimals 33.3300 =ROUND(F71/F72,2) Roundup to two decimals 33.3400 =ROUNDUP(F71/F72,2) FAQ 03 When I upload it, the results show that I have an answer wrong, yet that answer is needed for another question which is marked correct. Answer: The computer is giving you part credit. Given: Width 10 ft Length 12 ft Cost per sq. ft. $6 Find {1.1} Area ----- 100 sq ft (wrong) {1.2} Cost ---- $600 correct based on the wrong area. Note if the area is corrected,120 sq ft, the cost would be wrong. FIRST Eric LAST Kang`aru number 8245 File EK8245 I SEE THE LIGHT Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp; a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Fixed and Variable Cost Determinations - Unit Cost Calculations Cost Volume Relationships - Profit Planning Budgets Process Costing Job Order Costing Standard Costing - Variance Analysis Capital Decision Making To upload your work to Big Al the file without changing the name. Pay attention to the specific location that Excel saves the file. Return to the bottom of the page that you downloaded the file from; Cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update. Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. Page 2 I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales 25,000 lamps Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable (Commission per unit) Administrative Expenses: Fixed Variable Total Selling and Administrative Expenses: Net Profit @ $45.00 @ $30.00 1125000 750,000.00 375000 @ $3.00 23000 75,000.00 98000 @ $2.00 42000 50,000.00 92000 190,000.00 185000 I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 34710 67500 500 @ $16.00 0 3000 @ $30.00 8000 0 90000 200210 20000 6800 13,200.00 213410 54000 54000 12000 147,410.00 159410 213410 Page 3 Eric Kang`aru 8500 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 2.0000000 2.0000000 10.0000000 per lamp per lamp (4 lamps/hr.) per lamp 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 places. 1. Material Costs are expected to increase by 3.50% . 2. Labor Costs are expected to increase by 6.00%. 3. Variable Overhead is expected to increase by 2.00%. 4. Fixed Overhead is expected to increase to $265,000. 5. Fixed Administrative expenses are expected to increase to $54,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.50%. 7. Fixed selling expenses are expected to be $39,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 2.00%. 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. Page 4 Eric Kang`aru 8500 I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places 16 3.5 16.56 {4.01} 2 Labor 2 6 2.12 {4.02} Variable Overhead 2 2 2.04 {4.03} 2 2 20.72 {4.04} 2 Lamp Kit Projected Variable Manufacturing Cost Per Unit 20 11.5 Total Variable Cost Per Unit 20x1 Cost Variable Selling Variable Administrative Projected Percent Increase 3 2 4.5 2 Projected Variable Manufacturing Unit Cost 20 11.5 Projected Total Variable Cost Per Unit 25 20x2 Cost Rounded to 2 Decimal Places 18 3.14 {4.05} 2.04 {4.06} 20.72 {4.04} 2 2 2 25.90 {4.07} 2 Schedule of Fixed Costs 20x1 Cost 20x2 Cost Fixed Overhead (normal capacity of _________ lamps @ __ ) 1.06 Projected Percent Increase 6 $ 265,000.00 {4.08} 2 Fixed Selling Fixed Administrative 1.56 2.16 69.56 28.57 $ $ 39,000.00 54,000.00 {4.09} {4.10} 2 2 Projected Total Fixed Costs 4.78 104.13 $ 358,000.00 {4.11} 2 Page 5 Eric Kang`aru 8500 PART 2 Cost Volume Relationships Profit Planning Big Al is about to begin work on the budget for 20x2 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 selling price per unit. 1. For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution margin ratio for each lamp sold? 19.1 {5.01} 2 42.44% {5.02} 4 29,477 units {5.03} 0 {5.04} 0 Contribution Margin per unit (Round to two places, $##.##) Contribution Margin Ratio (Round to four places,% is two of those places ##.##%) 2. For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $205,000 . What would sales in units have to be in 20x2 to reach the profit goal? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 3. For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $45,000.00 how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 21,100 units Page 6 Eric Kang`aru 8500 4. For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $4.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 5. 0 15,170 units {6.02} 0 15,170 units {6.03} 0 24,521 units {6.04} 0 If for 20x2 the selling price per lamp is increased to $49.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 7. {6.01} For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $4.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 6. 24,521 units If for 20x2 the selling price per lamp is decreased to $40.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) Page 7 Eric Kang`aru 8500 PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 35,000 lamps at $51.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 725 pieces and decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory Total Production 500 35000 35500 3000 32,500 units {7.01} 0 Page 8 Eric Kang`aru 8500 2 Materials Budget Lamp Kits Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.01} {8.02} {8.03} {8.04} 0 0 0 0 {8.05} {8.06} 2 0 {8.07} 2 {8.08} 2 Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, $##.##) Fixed Factory Overhead {8.09} {8.10} 2 2 Total Factory Overhead (Round to two places, $##.##) {8.11} 2 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $##.##) 4 Factory Overhead Budget Page 9 Eric Kang`aru 8500 4 Factory Overhead Budget Overhead Allocation rate based on: 1. Number of Units Total Factory Overhead / Number of Units (Round to two places, $##.##) 5 Cost of making one unit next year Cost of one Lamp Kit Cost of Labor Cost Per Lamp Goods Factory overhead per unit Sold Budget Total cost of one unit Assume (Round to two places, $##.##) FIFO (FirstIn, 6 Selling and Admin. Budget FirstOut) Fixed Selling and overhea Variable Selling (Round to two places, $##.##) d is Administrative Fixed applied Variable Administrative (Round to two places, $##.##) based Total on theSelling and Administrative (Round to two places, $##.##) number of units to be 7 produce d. Beginning Inventory, Finished Goods Production Costs: Materials: Lamp Kits: Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits Lamp Kits Used In Production Total Materials: Labor Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold ### 2 ### ### 2 2 2 2 ### 2 ### ### 2 2 ### 2 ### 2 ### ### ### ### ### ### 2 2 2 2 2 2 Round dollars to two places, $##.## Page 10 Eric Kang`aru 8500 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin. Expenses Net Income ### 2 ### ### ### 2 2 2 ### 2 ### ### 2 2 Budgeted Cash Balance before financing Needed Minimum Balance ### 2 Amount to be borrowed (if any) ### 2 Budgeted Cash Balance ### 2 8 Cash Budget Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) 1. 23.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February. 2. 83.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February. 3. All other manufacturing and operating costs are paid for when incurred. 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. 5. Minimum Cash Balance needed for 20x2, $150,000 . I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Round dollars to two places, $##.## Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows Page 11 Eric Kang`aru 8500 PART 4 This page is blank General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 3,300 figurines at a cost of $51,966.00. Of this amount, $5,346.00 was from raw materials added, $31,080.00 for labor and $15,540.00 for overhead. These 3,300 figurines were assumed to be 70.00% complete as to labor and overhead. During January, 24,000 units were started, $38,880.00 of materials and $37,770.00 of labor costs were incurred. The 4,500 figurines that were in-process at the end of January were assumed to be 60.00% complete to labor and overhead. All figurines in January passed inspection. Page 12 Eric Kang`aru 8500 This page is blank January MOLDING Physical Flow of Units Work-in-Process - Beginning Units Started this Period Units to Account for Total transferred out Work-in-Process - Ending Total Accounted for {12.01} {12.02} 0 0 Equivalent Units Material (Round to two places, ##,###.##) {12.03} 2 Equivalent Units Conversion (Round to two places, ##,###.##) {12.04} 2 Total cost of Material (Round to two places, ##.###.##) {12.05} 2 Total cost of Conversion (Round to two places, ##.###.##) Total cost to account for (Round to two places, ##.###.##) {12.06} {12.07} 2 2 Cost per equivalent unit of Material (Round to two places, ###.##) {12.08} 2 Cost per equivalent unit of Conversion (Round to two places, ###.##) {12.09} 2 Cost of the ending inventory, material and convesion (Round to two places, $###,###.## ) {12.10} 2 Cost of the units transferred, material and convesion (Round to two places, $###,###.## ) {12.11} 2 Page 13 Eric Kang`aru 8500 PART 5 Job Order Costing To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan 9-Jan 17-Jan 30-Jan 30-Jan Purchased 4,200 Lamp Kits @ $16.25 per kit. 4,225 sets of Lamp Kits were requisitioned. Payroll of 630 Direct Labor Hours @ $9.40 per hour. Payroll of 680 Direct Labor Hours @ $9.65 per hour. 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fixed Manufacturing Overhead 1336.2 41123.45 Round to two places, $##.## Cost of Direct Material Incurred in Manufacturing Job 2407 648375 {13.01} 2 {13.02} 2 {13.03} 2 {13.04} 2 Cost of Direct Labor Incurred in Manufacturing Job 2407 Cost of Manufacturing Overhead Applied to Job 2407 Cost of manufacturing one lamp Page 14 Eric Kang`aru 8500 PART 6 Standard Job Order Costing Variance Analysis Special order lamps are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders: Standards Lamp Kits Direct Labor Variable Overhead ** Fixed Overhead Total ### 2.400000 0.250000 10.000000 ### per lamp per lamp (4 lamps/hr.) per lamp (4 lamps/hr.) per lamp ** Fixed overhead is based on expected production of 4,013 customized lamps each month. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while entries are made to the accounting system at standard. Variance analysis is used to analyze the differences. Job Order Costing Section On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan 9-Jan 17-Jan 30-Jan 30-Jan Purchased 4,200 Lamp Kits @ $16.25 per kit. 4,225 sets of Lamp Kits were requisitioned. Payroll of 630 Direct Labor Hours @ $9.40 per hour. Payroll of 680 Direct Labor Hours @ $9.65 per hour. 3,987 lamps were completed and shipped. All materials requisitioned were used or scrapped. Month End Overhead Information Actual Variable Overhead Actual Fixed Overhead 1336.2 41123.45 Page 15 Eric Kang`aru 8500 How many Lamps were completed? Note: Show favorable variances as negative numbers Round dollars to two places, $##.## What was the total material price variance for the Lamp Kits purchased? ### 2 What was the material usage variance for Lamp Kits? ### 2 What was the direct labor efficiency variance ? ### 2 What was the direct labor rate variance? ### 2 Page 16 Eric Kang`aru 8500 Note: Show favorable variances as negative numbers ### 2 ### 2 What is the fixed OH volume (denominator) variance? ### 2 What is the fixed OH spending variance? ### 2 What was the variable overhead efficiency variance What was the variable OH spending variance ? ? Page 17 Eric Kang`aru 8500 PART 7 Capital Decision Making Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker. He has priced a machine at a national member only warehouse for $1,900. The machine should be usable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 13 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cans) costs $6.24 and Big Al believes that a price of $.60 per can would win him good will. What is the estimated annual sales in cans of soda? {17.01} 0 {17.02} 2 {17.03} 0 {17.04} 2 {17.05} 2 {17.06} 2 {17.07} 3 What is the contribution margin per can of soda? (rounded to two places, $#.##) How many cans of soda must be sold each year to breakeven? (Round up to zero places, ###,### cans) Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##) What is the payback period in years? (rounded to two places, #.## years) If the time value of money is 12% per year what is the net present value? Use the tables on page 18. What is the internal rate of return. Pick the closest interest rate from the tables on page 18. Page 18 Interest Rate 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0% 15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0% 20.5% 21.0% 21.5% 22.0% 22.5% 23.0% 23.5% 24.0% 24.5% 25.0% 25.5% 26.0% 26.5% 27.0% 27.5% 28.0% 28.5% 29.0% 29.5% 30.0% 30.5% 31.0% 31.5% 32.0% 32.5% 33.0% 33.5% 34.0% 34.5% 35.0% 35.5% 36.0% 36.5% 37.0% 37.5% 38.0% 38.5% 39.0% 39.5% 40.0% 40.5% 41.0% 41.5% 42.0% 42.5% 43.0% 43.5% 44.0% 44.5% 45.0% 45.5% 46.0% 46.5% 47.0% 47.5% 48.0% 48.5% 49.0% 49.5% 50.0% Present Value of Annuity $1.00 in Arrears 3 Periods Periods Interest 3 2.884 2.856 2.829 2.802 2.775 2.749 2.723 2.698 2.673 2.648 2.624 2.601 2.577 2.554 2.531 2.509 2.487 2.465 2.444 2.423 2.402 2.381 2.361 2.341 2.322 2.302 2.283 2.264 2.246 2.228 2.210 2.192 2.174 2.157 2.140 2.123 2.106 2.090 2.074 2.058 2.042 2.027 2.011 1.996 1.981 1.967 1.952 1.938 1.923 1.909 1.896 1.882 1.868 1.855 1.842 1.829 1.816 1.803 1.791 1.779 1.766 1.754 1.742 1.730 1.719 1.707 1.696 1.685 1.673 1.662 1.652 1.641 1.630 1.620 1.609 1.599 1.589 1.579 1.569 1.559 1.549 1.540 1.530 1.521 1.512 1.502 1.493 1.484 1.475 1.467 1.458 1.449 1.441 1.432 1.424 1.416 1.407 4 3.808 3.762 3.717 3.673 3.630 3.588 3.546 3.505 3.465 3.426 3.387 3.349 3.312 3.276 3.240 3.204 3.170 3.136 3.102 3.070 3.037 3.006 2.974 2.944 2.914 2.884 2.855 2.826 2.798 2.770 2.743 2.716 2.690 2.664 2.639 2.613 2.589 2.564 2.540 2.517 2.494 2.471 2.448 2.426 2.404 2.383 2.362 2.341 2.320 2.300 2.280 2.260 2.241 2.222 2.203 2.185 2.166 2.148 2.130 2.113 2.096 2.079 2.062 2.045 2.029 2.013 1.997 1.981 1.966 1.951 1.935 1.921 1.906 1.892 1.877 1.863 1.849 1.836 1.822 1.809 1.795 1.782 1.769 1.757 1.744 1.732 1.720 1.707 1.695 1.684 1.672 1.660 1.649 1.638 1.627 1.616 1.605 5 4.713 4.646 4.580 4.515 4.452 4.390 4.329 4.270 4.212 4.156 4.100 4.046 3.993 3.941 3.890 3.840 3.791 3.743 3.696 3.650 3.605 3.561 3.517 3.475 3.433 3.392 3.352 3.313 3.274 3.236 3.199 3.163 3.127 3.092 3.058 3.024 2.991 2.958 2.926 2.895 2.864 2.833 2.803 2.774 2.745 2.717 2.689 2.662 2.635 2.609 2.583 2.557 2.532 2.507 2.483 2.459 2.436 2.412 2.390 2.367 2.345 2.324 2.302 2.281 2.260 2.240 2.220 2.200 2.181 2.162 2.143 2.124 2.106 2.088 2.070 2.052 2.035 2.018 2.001 1.985 1.969 1.953 1.937 1.921 1.906 1.890 1.876 1.861 1.846 1.832 1.818 1.804 1.790 1.776 1.763 1.750 1.737 6 5.601 5.508 5.417 5.329 5.242 5.158 5.076 4.996 4.917 4.841 4.767 4.694 4.623 4.554 4.486 4.420 4.355 4.292 4.231 4.170 4.111 4.054 3.998 3.943 3.889 3.836 3.784 3.734 3.685 3.636 3.589 3.543 3.498 3.453 3.410 3.367 3.326 3.285 3.245 3.205 3.167 3.129 3.092 3.056 3.020 2.986 2.951 2.918 2.885 2.853 2.821 2.790 2.759 2.729 2.700 2.671 2.643 2.615 2.588 2.561 2.534 2.508 2.483 2.458 2.433 2.409 2.385 2.362 2.339 2.316 2.294 2.272 2.251 2.229 2.209 2.188 2.168 2.148 2.129 2.109 2.091 2.072 2.054 2.036 2.018 2.000 1.983 1.966 1.949 1.933 1.917 1.901 1.885 1.870 1.854 1.839 1.824 Rate 50.5% 51.0% 51.5% 52.0% 52.5% 53.0% 53.5% 54.0% 54.5% 55.0% 55.5% 56.0% 56.5% 57.0% 57.5% 58.0% 58.5% 59.0% 59.5% 60.0% 60.5% 61.0% 61.5% 62.0% 62.5% 63.0% 63.5% 64.0% 64.5% 65.0% 65.5% 66.0% 66.5% 67.0% 67.5% 68.0% 68.5% 69.0% 69.5% 70.0% 70.5% 71.0% 71.5% 72.0% 72.5% 73.0% 73.5% 74.0% 74.5% 75.0% 75.5% 76.0% 76.5% 77.0% 77.5% 78.0% 78.5% 79.0% 79.5% 80.0% 80.5% 81.0% 81.5% 82.0% 82.5% 83.0% 83.5% 84.0% 84.5% 85.0% 85.5% 86.0% 86.5% 87.0% 87.5% 88.0% 88.5% 89.0% 89.5% 90.0% 90.5% 91.0% 91.5% 92.0% 92.5% 93.0% 93.5% 94.0% 94.5% 95.0% 95.5% 96.0% 96.5% 97.0% 97.5% 98.0% 98.5% 99.0% 99.5% 100.0% Periods 3 1.399 1.391 1.383 1.375 1.368 1.360 1.352 1.345 1.337 1.330 1.323 1.315 1.308 1.301 1.294 1.287 1.280 1.273 1.266 1.260 1.253 1.247 1.240 1.234 1.227 1.221 1.214 1.208 1.202 1.196 1.190 1.184 1.178 1.172 1.166 1.160 1.155 1.149 1.143 1.138 1.132 1.127 1.121 1.116 1.111 1.105 1.100 1.095 1.090 1.085 1.079 1.074 1.069 1.064 1.060 1.055 1.050 1.045 1.040 1.036 1.031 1.026 1.022 1.017 1.013 1.008 1.004 0.999 0.995 0.991 0.986 0.982 0.978 0.974 0.969 0.965 0.961 0.957 0.953 0.949 0.945 0.941 0.937 0.933 0.930 0.926 0.922 0.918 0.914 0.911 0.907 0.903 0.900 0.896 0.893 0.889 0.885 0.882 0.878 0.875 4 1.594 1.584 1.573 1.563 1.553 1.542 1.532 1.523 1.513 1.503 1.494 1.484 1.475 1.466 1.457 1.447 1.439 1.430 1.421 1.412 1.404 1.395 1.387 1.379 1.371 1.362 1.354 1.347 1.339 1.331 1.323 1.316 1.308 1.301 1.293 1.286 1.279 1.272 1.265 1.258 1.251 1.244 1.237 1.230 1.224 1.217 1.210 1.204 1.198 1.191 1.185 1.179 1.172 1.166 1.160 1.154 1.148 1.143 1.137 1.131 1.125 1.120 1.114 1.108 1.103 1.097 1.092 1.087 1.081 1.076 1.071 1.066 1.061 1.055 1.050 1.045 1.040 1.036 1.031 1.026 1.021 1.016 1.012 1.007 1.002 0.998 0.993 0.989 0.984 0.980 0.975 0.971 0.967 0.962 0.958 0.954 0.950 0.946 0.942 0.938 If off the chart use 100% 5 1.724 1.711 1.698 1.686 1.674 1.662 1.650 1.638 1.626 1.615 1.604 1.592 1.581 1.570 1.560 1.549 1.539 1.528 1.518 1.508 1.498 1.488 1.478 1.468 1.459 1.449 1.440 1.431 1.422 1.413 1.404 1.395 1.386 1.378 1.369 1.361 1.352 1.344 1.336 1.328 1.320 1.312 1.304 1.297 1.289 1.281 1.274 1.267 1.259 1.252 1.245 1.238 1.231 1.224 1.217 1.210 1.204 1.197 1.190 1.184 1.177 1.171 1.165 1.158 1.152 1.146 1.140 1.134 1.128 1.122 1.116 1.111 1.105 1.099 1.094 1.088 1.082 1.077 1.072 1.066 1.061 1.056 1.050 1.045 1.040 1.035 1.030 1.025 1.020 1.015 1.010 1.006 1.001 0.996 0.992 0.987 0.982 0.978 0.973 0.969 6 1.810 1.795 1.781 1.767 1.753 1.740 1.726 1.713 1.700 1.687 1.674 1.662 1.649 1.637 1.625 1.613 1.602 1.590 1.579 1.567 1.556 1.545 1.534 1.524 1.513 1.503 1.492 1.482 1.472 1.462 1.452 1.443 1.433 1.424 1.414 1.405 1.396 1.387 1.378 1.369 1.361 1.352 1.344 1.335 1.327 1.319 1.311 1.303 1.295 1.287 1.279 1.272 1.264 1.256 1.249 1.242 1.235 1.227 1.220 1.213 1.206 1.199 1.193 1.186 1.179 1.173 1.166 1.160 1.153 1.147 1.141 1.135 1.129 1.123 1.117 1.111 1.105 1.099 1.093 1.087 1.082 1.076 1.071 1.065 1.060 1.054 1.049 1.044 1.039 1.033 1.028 1.023 1.018 1.013 1.008 1.003 0.999 0.994 0.989 0.984 Factor 0.878 0.882 0.885 0.889 0.893 0.896 0.900 0.903 0.907 0.911 0.914 0.918 0.922 0.926 0.930 0.933 0.937 0.941 0.945 0.949 0.953 0.957 0.961 0.965 0.969 0.974 0.978 0.982 0.986 0.991 0.995 0.999 1.004 1.008 1.013 1.017 1.022 1.026 1.031 1.036 1.040 1.045 1.050 1.055 1.060 1.064 1.069 1.074 1.079 1.085 1.090 1.095 1.100 1.105 1.111 1.116 1.121 1.127 1.132 1.138 1.143 1.149 1.155 1.160 1.166 1.172 1.178 1.184 1.190 1.196 1.202 1.208 1.214 1.221 1.227 1.234 1.240 1.247 1.253 1.260 1.266 1.273 1.280 1.287 1.294 1.301 1.308 1.315 1.323 1.330 1.337 1.345 1.352 1.360 1.368 1.375 1.383 1.391 1.399 1.407 1.416 Interest Rate 100.0% 99.5% 99.0% 98.5% 98.0% 97.5% 97.0% 96.5% 96.0% 95.5% 95.0% 94.5% 94.0% 93.5% 93.0% 92.5% 92.0% 91.5% 91.0% 90.5% 90.0% 89.5% 89.0% 88.5% 88.0% 87.5% 87.0% 86.5% 86.0% 85.5% 85.0% 84.5% 84.0% 83.5% 83.0% 82.5% 82.0% 81.5% 81.0% 80.5% 80.0% 79.5% 79.0% 78.5% 78.0% 77.5% 77.0% 76.5% 76.0% 75.5% 75.0% 74.5% 74.0% 73.5% 73.0% 72.5% 72.0% 71.5% 71.0% 70.5% 70.0% 69.5% 69.0% 68.5% 68.0% 67.5% 67.0% 66.5% 66.0% 65.5% 65.0% 64.5% 64.0% 63.5% 63.0% 62.5% 62.0% 61.5% 61.0% 60.5% 60.0% 59.5% 59.0% 58.5% 58.0% 57.5% 57.0% 56.5% 56.0% 55.5% 55.0% 54.5% 54.0% 53.5% 53.0% 52.5% 52.0% 51.5% 51.0% 50.5% 50.0% 49.5% Interest Rate 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0% 15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0% 20.5% 21.0% 21.5% 22.0% 22.5% 23.0% 23.5% 24.0% 24.5% 25.0% 25.5% 26.0% 26.5% 27.0% 27.5% 28.0% 28.5% 29.0% 29.5% 30.0% 30.5% 31.0% 31.5% 32.0% 32.5% 33.0% 33.5% 34.0% 34.5% 35.0% 35.5% 36.0% 36.5% 37.0% 37.5% 38.0% 38.5% 39.0% 39.5% 40.0% 40.5% 41.0% 41.5% 42.0% 42.5% 43.0% 43.5% 44.0% 44.5% 45.0% 45.5% 46.0% 46.5% 47.0% 47.5% 48.0% 48.5% 49.0% 49.5% 50.0% 50.5% 51.0% 51.5% 52.0% 52.5% Factor 2.884 2.856 2.829 2.802 2.775 2.749 2.723 2.698 2.673 2.648 2.624 2.601 2.577 2.554 2.531 2.509 2.487 2.465 2.444 2.423 2.402 2.381 2.361 2.341 2.322 2.302 2.283 2.264 2.246 2.228 2.210 2.192 2.174 2.157 2.140 2.123 2.106 2.090 2.074 2.058 2.042 2.027 2.011 1.996 1.981 1.967 1.952 1.938 1.923 1.909 1.896 1.882 1.868 1.855 1.842 1.829 1.816 1.803 1.791 1.779 1.766 1.754 1.742 1.730 1.719 1.707 1.696 1.685 1.673 1.662 1.652 1.641 1.630 1.620 1.609 1.599 1.589 1.579 1.569 1.559 1.549 1.540 1.530 1.521 1.512 1.502 1.493 1.484 1.475 1.467 1.458 1.449 1.441 1.432 1.424 1.416 1.407 1.399 1.391 1.383 1.375 1.368 Page 18 Interest Rate Present Value of Annuity $1.00 in Arrears 3 Periods Periods Interest 3 4 5 6 Rate Periods 3 4 5 6 Factor 1.424 1.432 1.441 1.449 1.458 1.467 1.475 1.484 1.493 1.502 1.512 1.521 1.530 1.540 1.549 1.559 1.569 1.579 1.589 1.599 1.609 1.620 1.630 1.641 1.652 1.662 1.673 1.685 1.696 1.707 1.719 1.730 1.742 1.754 1.766 1.779 1.791 1.803 1.816 1.829 1.842 1.855 1.868 1.882 1.896 1.909 1.923 1.938 1.952 1.967 1.981 1.996 2.011 2.027 2.042 2.058 2.074 2.090 2.106 2.123 2.140 2.157 2.174 2.192 2.210 2.228 2.246 2.264 2.283 2.302 2.322 2.341 2.361 2.381 2.402 2.423 2.444 2.465 2.487 2.509 2.531 2.554 2.577 2.601 2.624 2.648 2.673 2.698 2.723 2.749 2.775 2.802 2.829 2.856 2.884 2.912 2.941 2.970 2.706 Interest Rate 49.0% 48.5% 48.0% 47.5% 47.0% 46.5% 46.0% 45.5% 45.0% 44.5% 44.0% 43.5% 43.0% 42.5% 42.0% 41.5% 41.0% 40.5% 40.0% 39.5% 39.0% 38.5% 38.0% 37.5% 37.0% 36.5% 36.0% 35.5% 35.0% 34.5% 34.0% 33.5% 33.0% 32.5% 32.0% 31.5% 31.0% 30.5% 30.0% 29.5% 29.0% 28.5% 28.0% 27.5% 27.0% 26.5% 26.0% 25.5% 25.0% 24.5% 24.0% 23.5% 23.0% 22.5% 22.0% 21.5% 21.0% 20.5% 20.0% 19.5% 19.0% 18.5% 18.0% 17.5% 17.0% 16.5% 16.0% 15.5% 15.0% 14.5% 14.0% 13.5% 13.0% 12.5% 12.0% 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Interest Rate 53.0% 53.5% 54.0% 54.5% 55.0% 55.5% 56.0% 56.5% 57.0% 57.5% 58.0% 58.5% 59.0% 59.5% 60.0% 60.5% 61.0% 61.5% 62.0% 62.5% 63.0% 63.5% 64.0% 64.5% 65.0% 65.5% 66.0% 66.5% 67.0% 67.5% 68.0% 68.5% 69.0% 69.5% 70.0% 70.5% 71.0% 71.5% 72.0% 72.5% 73.0% 73.5% 74.0% 74.5% 75.0% 75.5% 76.0% 76.5% 77.0% 77.5% 78.0% 78.5% 79.0% 79.5% 80.0% 80.5% 81.0% 81.5% 82.0% 82.5% 83.0% 83.5% 84.0% 84.5% 85.0% 85.5% 86.0% 86.5% 87.0% 87.5% 88.0% 88.5% 89.0% 89.5% 90.0% 90.5% 91.0% 91.5% 92.0% 92.5% 93.0% 93.5% 94.0% 94.5% 95.0% 95.5% 96.0% 96.5% 97.0% 97.5% 98.0% 98.5% 99.0% 99.5% 100.0% Factor 1.360 1.352 1.345 1.337 1.330 1.323 1.315 1.308 1.301 1.294 1.287 1.280 1.273 1.266 1.260 1.253 1.247 1.240 1.234 1.227 1.221 1.214 1.208 1.202 1.196 1.190 1.184 1.178 1.172 1.166 1.160 1.155 1.149 1.143 1.138 1.132 1.127 1.121 1.116 1.111 1.105 1.100 1.095 1.090 1.085 1.079 1.074 1.069 1.064 1.060 1.055 1.050 1.045 1.040 1.036 1.031 1.026 1.022 1.017 1.013 1.008 1.004 0.999 0.995 0.991 0.986 0.982 0.978 0.974 0.969 0.965 0.961 0.957 0.953 0.949 0.945 0.941 0.937 0.933 0.930 0.926 0.922 0.918 0.914 0.911 0.907 0.903 0.900 0.896 0.893 0.889 0.885 0.882 0.878 0.875 ZL9325 I SEE THE LIGHT www.cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Youryou Excel ZHE, when areFile. ready to have your work graded you will upload this file to the same screen that the project was downloaded from: Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. There are alternative methods of solving problems. To insure similar answers and to guarantee that you are graded correctly please follow the instructions as to rounding. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. F820 100721 ZL9325.xls, or ZL9325.xlsx, FAQ 01 What is the difference between rounding a number and rounding up a number? Given: Cost of a Taxi Number of Passengers Find Cost per Passenger Without rounding Rounding to two decimals Roundup to two decimals $100.00 3 $33.333333 $33.330000 $33.340000 =C3/C4 =ROUND(C3/C4,2) =ROUNDUP(C3/C4,2) FAQ 02 When I upload it, the results show that I have an answer wrong, yet that answer is needed for another question which is marked correct. The computer is giving you part credit. Given: Width 10 ft Length 12 ft Cost per sq. ft. $6 Find {1.1} Area ----- 100 sq ft (wrong) {1.2} Cost ---- $600 correct based on the wrong area. Note if the area is corrected,120 sq ft, the cost would be wrong. FIRST ZHE LAST LI number 9325 File ZL9325 I SEE THE LIGHT Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp; a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Fixed and Variable Cost Determinations - Unit Cost Calculations Cost Volume Relationships - Profit Planning Budgets Process Costing Job Order Costing Standard Costing - Variance Analysis Capital Decision Making To upload your work to Big Al the file without changing the name. Pay attention to the specific location that Excel saves the file. Return to the bottom of the page that you downloaded the file from; Cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update. Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. Page 2 I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales 25,000 lamps @ Cost of Goods Sold @ Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ Administrative Expenses: Fixed Variable @ Total Selling and Administrative Expenses: Net Profit $45.00 $30.00 $ 1,125,000.00 750,000.00 $ 375,000.00 $3.00 $ 23,000.00 75,000.00 $ 98,000.00 $2.00 $ 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 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 500 @ $16.00 0 3000 @ $30.00 34,710.00 67,500.00 $ 8,000.00 90,000.00 200,210.00 $ 13,200.00 213,410.00 $ $ 54,000.00 54,000.00 $ 159,410.00 213,410.00 $ 20,000.00 6,800.00 $ 12,000.00 147,410.00 Page 3 ZHE LI 9602 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 2.0000000 2.0000000 10.0000000 per lamp per lamp (4 lamps/hr.) per lamp 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 places. 1. Material Costs are expected to increase by 4.50% . 2. Labor Costs are expected to increase by 6.50%. 3. Variable Overhead is expected to increase by 3.00%. 4. Fixed Overhead is expected to increase to $275,000. 5. Fixed Administrative expenses are expected to increase to $56,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 6.00%. 7. Fixed selling expenses are expected to be $41,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 2.00%. 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. Page 4 ZHE LI 9602 I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places 16 4.50% $16.72 {4.01} 2 Labor 2 6.50% $2.13 {4.02} Variable Overhead 2 3.00% $2.06 {4.03} 2 2 $20.91 {4.04} 2 {4.04} 2 2 2 26.13 {4.07} 2 Lamp Kit Projected Variable Manufacturing Cost Per Unit 20 Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Variable Selling 3 6.00% 3.18 {4.05} Variable Administrative 2 2.00% 2.04 {4.06} Projected Variable Manufacturing Unit Cost 5 Projected Total Variable Cost Per Unit Schedule of Fixed Costs 20x1 Cost 20x2 Cost Projected Percent Increase $ 275,000.00 {4.08} 2 Fixed Selling $ 41,000.00 {4.09} Fixed Administrative $ 56,000.00 {4.10} 2 2 Projected Total Fixed Costs $ 372,000.00 {4.11} 2 Fixed Overhead (normal capacity of _________ lamps @ __ ) Page 5 ZHE LI 9602 PART 2 Cost Volume Relationships Profit Planning Big Al is about to begin work on the budget for 20x2 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 selling price per unit. 1. 2. For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution margin ratio for each lamp sold? Contribution Margin per unit (Round to two places, $##.##) 45 26.13 $18.87 {5.01} 2 Contribution Margin Ratio (Round to four places,% is two of those places ##.##%) 41.93% {5.02} 4 {5.03} 0 {5.04} 0 For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $187,500 . What would sales in units have to be in 20x2 to reach the profit goal? 372000 187500 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 3. 559500 29,651 units For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $55,000.00 how many lamps must be sold to breakeven? 55000 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 427000 22,629 units Page 6 ZHE LI 9602 4. For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $5.50 a unit how many lamps must be sold to breakeven? 26.13 5.5 31.63 45 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 5. 372000 13.37 27,824 units {6.01} 0 {6.02} 0 15,265 units {6.03} 0 13.37 27,824 units {6.04} 0 For 20x2 the selling price per lamp will be $45.00. If the variable cost decreased by $5.50 a unit how many lamps must be sold to breakeven? 20.63 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 6. If for 20x2 the selling price per lamp is increased to $50.50 a unit how many lamps must be sold to breakeven? 50.5 26.13 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 7. 24.37 15,265 units 24.37 If for 20x2 the selling price per lamp is decreased to $39.50 a unit how many lamps must be sold to breakeven? 39.5 Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) Page 7 ZHE LI 9602 PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 37,000 lamps at $54.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 750 pieces and decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory Total Production 36,400 units {7.01} 0 Page 8 ZHE LI 9602 2 Materials Budget Lamp Kits Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) $ $ 36,400 units 750 units 37,150 units 500 units 36,650 units 16.72 612,788.00 {8.01} {8.02} {8.03} {8.04} 0 0 0 0 {8.05} {8.06} 2 0 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $##.##) $ 2.13 {8.07} 2 $ 77,532.00 {8.08} 2 $ 2.0600000 $ $ 74,984.00 275,000.00 {8.09} {8.10} 2 2 $ 349,984.00 {8.11} 2 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, $##.##) Fixed Factory Overhead Total Factory Overhead (Round to two places, $##.##) Page 9 ZHE LI 9602 4 Factory Overhead Budget Overhead Allocation rate based on: 1. Number of Units Total Factory Overhead / Number of Units (Round to two places, $##.##) 36400 349984 $9.61 {9.01} 5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp Factory overhead per unit 16.72 $2.13 {9.02} $28.46 {9.03} Total cost of one unit (Round to two places, $##.##) 2 2 2 2 2 6 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, $##.##) Fixed Administrative Variable Administrative (Round to two places, $##.##) Total Selling and Administrative (Round to two places, $##.##) 7 Cost of Goods Sold Budget - Assume FIFO (First-In, First-Out) and overhead is applied based on the number of units to be produced. Beginning Inventory, Finished Goods Production Costs: Materials: Lamp Kits: Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits Lamp Kits Used In Production Total Materials: Labor Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold $ $ 41000 $117,660.00 {9.04} 56000 75,480.00 {9.05} 290,140.00 {9.06} Round dollars to two places, $##.## $ 90,000.00 {9.07} $ 1,035,944.000 $ $ $ $ $ $ $ $ $ $ $ 8,000.000 612,788.000 620,788.000 12,540.00 {9.08} 608,248.000 608,248.00 77,532.00 349,984.00 1,125,764.00 68,304.00 1,057,460.00 {9.09} {9.10} {9.11} {9.12} {9.13} {9.14} 2 2 2 2 2 2 2 2 2 2 2 Page 10 ZHE LI 9602 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin. Expenses Net Income $ $ $ $ 1,998,000.00 1,057,460.00 940,540.00 $290,140.00 650,400.00 {10.01} 2 8 Cash Budget Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) 1. 16.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February. 2. 85.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February. 3. All other manufacturing and operating costs are paid for when incurred. 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. 5. Minimum Cash Balance needed for 20x2, $160,000 . I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available Round dollars to two places, $##.## 34,710.000 $ $ $ $ 67,500.00 {10.02} 1,678,320.00 {10.03} 1,780,530.00 {10.04} Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows $ $ $ $ $ $ $ $ 54,000.000 520,869.80 {10.05} 349,984.000 77,532.000 1,002,385.800 290,140.000 2,232.00 {10.06} 1,290,293.80 {10.07} Budgeted Cash Balance before financing Needed Minimum Balance $ $ 490,236.20 {10.08} 160,000.000 2 {10.09} 2 490,236.20 {10.10} 2 Amount to be borrowed (if any) $ Budgeted Cash Balance $ - 2 2 2 2 2 2 Page 11 ZHE LI 9602 PART 4 Process Costing - Weighted Average General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 3,400 figurines at a cost of $69,262.25. Of this amount, $5,576.00 was from raw materials added, $42,457.50 for labor and $21,228.75 for overhead. These 3,400 figurines were assumed to be 90.00% complete as to labor and overhead. During January, 25,500 units were started, $41,820.00 of materials and $36,567.50 of labor costs were incurred. The 5,500 figurines that were in-process at the end of January were assumed to be 70.00% complete to labor and overhead. All figurines in January passed inspection. Page 12 ZHE LI 9602 January MOLDING Physical Flow of Units Work-in-Process - Beginning Units Started this Period Units to Account for 3,400 units 25,500 units 28,900 units Total transferred out Work-in-Process - Ending Total Accounted for 23,400 units {12.01} 5,500 units {12.02} 0 0 Equivalent Units Material (Round to two places, ##,###.##) 28,900.00 {12.03} 2 Equivalent Units Conversion (Round to two places, ##,###.##) 27,250.00 {12.04} 2 Total cost of Material (Round to two places, ##.###.##) $ 47,396.00 {12.05} 2 Total cost of Conversion (Round to two places, ##.###.##) Total cost to account for (Round to two places, ##.###.##) $ $ 118,537.50 {12.06} 165,933.50 {12.07} 2 2 Cost per equivalent unit of Material (Round to two places, ###.##) $ 1.64 {12.08} 2 Cost per equivalent unit of Conversion (Round to two places, ###.##) $ 4.35 {12.09} 2 Cost of the ending inventory, material and convesion (Round to two places, $###,###.## ) $ 25,767.50 {12.10} 2 Cost of the units transferred, material and convesion (Round to two places, $###,###.## ) $ 140,166.00 {12.11} 2 Page 13 ZHE LI 9602 PART 5 Job Order Costing To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. Overhead is applied at the rate of 50% of the direct labor cost. Job Order Costing Section On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,225 Lamp Kits @ $16.25 per kit. 9-Jan 4,050 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 640 Direct Labor Hours @ $9.50 per hour. 30-Jan Payroll of 690 Direct Labor Hours @ $9.75 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fixed Manufacturing Overhead $ 1,463.00 $ 41,373.45 Round to two places, $##.## Cost of Direct Material Incurred in Manufacturing Job 2407 $ 65,812.50 {13.01} 2 $ 12,807.50 {13.02} 2 $ 6,403.75 {13.03} 2 $ 21.31 {13.04} 2 Cost of Direct Labor Incurred in Manufacturing Job 2407 Cost of Manufacturing Overhead Applied to Job 2407 Cost of manufacturing one lamp Page 14 ZHE LI 9602 PART 6 Standard Job Order Costing Variance Analysis Special order lamps are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders: Standards Lamp Kits Direct Labor Variable Overhead ** Fixed Overhead Total $ 16.000000 2.400000 0.250000 10.000000 $ 28.650000 per lamp per lamp (4 lamps/hr.) per lamp (4 lamps/hr.) per lamp ** Fixed overhead is based on expected production of 4,014 customized lamps each month. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while entries are made to the accounting system at standard. Variance analysis is used to analyze the differences. Job Order Costing Section On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,225 Lamp Kits @ $16.25 per kit. 9-Jan 4,050 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 640 Direct Labor Hours @ $9.50 per hour. 30-Jan Payroll of 690 Direct Labor Hours @ $9.75 per hour. 30-Jan 3,986 lamps were completed and shipped. All materials requisitioned were used or scrapped. Month End Overhead Information Actual Variable Overhead Actual Fixed Overhead $ 1,463.00 $ 41,373.45 Page 15 ZHE LI 9602 How many Lamps were completed? Note: Show favorable variances as negative numbers Round dollars to two places, $##.## What was the total material price variance for the Lamp Kits purchased? What was the material usage variance for Lamp Kits? 4225 16.25 $ 68656.25 16 67600 $ 4050 640 690 12807.5 What was the direct labor efficiency variance ? 1,056.25 {15.01} 2 1,024.00 {15.02} 3,986.00 9.50 9.75 9.60 12,768.00 2 $ 3,201.60 {15.03} 2 $ 39.50 {15.04} 2 9566.4 What was the direct labor rate variance? Page 16 ZHE LI 9602 Note: Show favorable variances as negative numbers 1330 996.5 What was the variable overhead efficiency variance ? $ 333.50 $ 1,463.00 What was the variable OH spending variance ? $ 133.00 3986 What is the fixed OH volume (denominator) variance? What is the fixed OH spending variance? ### 2 ### 2 4,014 units $ 280.00 ### 2 40140 $ $ 41,373.45 1,233.45 ### 2 Page 17 ZHE LI 9602 PART 7 Capital Decision Making Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker. He has priced a machine at a national member only warehouse for $2,000. The machine should be usable for 4 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 14 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cans) costs $6.48 and Big Al believes that a price of $.60 per can would win him good will. What is the estimated annual sales in cans of soda? 3,500 cans {17.01} 0 What is the contribution margin per can of soda? (rounded to two places, $#.##) $ 0.33 {17.02} 2 1,516 cans {17.03} 0 How many cans of soda must be sold each year to breakeven? (Round up to zero places, ###,### cans) Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##) $ 1,155.00 {17.04} 2 1.73 years {17.05} 2 1,507.74 {17.06} 2 44.50% {17.07} 3 What is the payback period in years? (rounded to two places, #.## years) If the time value of money is 12% per year what is the net present value? Use the tables on page 18. $ What is the internal rate of return. Pick the closest interest rate from the tables on page 18. Page 18 Interest Rate 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0% 15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0% 20.5% 21.0% 21.5% 22.0% 22.5% 23.0% 23.5% 24.0% 24.5% 25.0% 25.5% 26.0% 26.5% 27.0% 27.5% 28.0% 28.5% 29.0% 29.5% 30.0% 30.5% 31.0% 31.5% 32.0% 32.5% 33.0% 33.5% 34.0% 34.5% 35.0% 35.5% 36.0% 36.5% 37.0% 37.5% 38.0% 38.5% 39.0% 39.5% 40.0% 40.5% 41.0% 41.5% 42.0% 42.5% 43.0% 43.5% 44.0% 44.5% 45.0% 45.5% 46.0% 46.5% 47.0% 47.5% 48.0% 48.5% 49.0% 49.5% 50.0% Present Value of Annuity $1.00 in Arrears 4 Periods Periods Interest 3 2.884 2.856 2.829 2.802 2.775 2.749 2.723 2.698 2.673 2.648 2.624 2.601 2.577 2.554 2.531 2.509 2.487 2.465 2.444 2.423 2.402 2.381 2.361 2.341 2.322 2.302 2.283 2.264 2.246 2.228 2.210 2.192 2.174 2.157 2.140 2.123 2.106 2.090 2.074 2.058 2.042 2.027 2.011 1.996 1.981 1.967 1.952 1.938 1.923 1.909 1.896 1.882 1.868 1.855 1.842 1.829 1.816 1.803 1.791 1.779 1.766 1.754 1.742 1.730 1.719 1.707 1.696 1.685 1.673 1.662 1.652 1.641 1.630 1.620 1.609 1.599 1.589 1.579 1.569 1.559 1.549 1.540 1.530 1.521 1.512 1.502 1.493 1.484 1.475 1.467 1.458 1.449 1.441 1.432 1.424 1.416 1.407 4 3.808 3.762 3.717 3.673 3.630 3.588 3.546 3.505 3.465 3.426 3.387 3.349 3.312 3.276 3.240 3.204 3.170 3.136 3.102 3.070 3.037 3.006 2.974 2.944 2.914 2.884 2.855 2.826 2.798 2.770 2.743 2.716 2.690 2.664 2.639 2.613 2.589 2.564 2.540 2.517 2.494 2.471 2.448 2.426 2.404 2.383 2.362 2.341 2.320 2.300 2.280 2.260 2.241 2.222 2.203 2.185 2.166 2.148 2.130 2.113 2.096 2.079 2.062 2.045 2.029 2.013 1.997 1.981 1.966 1.951 1.935 1.921 1.906 1.892 1.877 1.863 1.849 1.836 1.822 1.809 1.795 1.782 1.769 1.757 1.744 1.732 1.720 1.707 1.695 1.684 1.672 1.660 1.649 1.638 1.627 1.616 1.605 5 4.713 4.646 4.580 4.515 4.452 4.390 4.329 4.270 4.212 4.156 4.100 4.046 3.993 3.941 3.890 3.840 3.791 3.743 3.696 3.650 3.605 3.561 3.517 3.475 3.433 3.392 3.352 3.313 3.274 3.236 3.199 3.163 3.127 3.092 3.058 3.024 2.991 2.958 2.926 2.895 2.864 2.833 2.803 2.774 2.745 2.717 2.689 2.662 2.635 2.609 2.583 2.557 2.532 2.507 2.483 2.459 2.436 2.412 2.390 2.367 2.345 2.324 2.302 2.281 2.260 2.240 2.220 2.200 2.181 2.162 2.143 2.124 2.106 2.088 2.070 2.052 2.035 2.018 2.001 1.985 1.969 1.953 1.937 1.921 1.906 1.890 1.876 1.861 1.846 1.832 1.818 1.804 1.790 1.776 1.763 1.750 1.737 6 5.601 5.508 5.417 5.329 5.242 5.158 5.076 4.996 4.917 4.841 4.767 4.694 4.623 4.554 4.486 4.420 4.355 4.292 4.231 4.170 4.111 4.054 3.998 3.943 3.889 3.836 3.784 3.734 3.685 3.636 3.589 3.543 3.498 3.453 3.410 3.367 3.326 3.285 3.245 3.205 3.167 3.129 3.092 3.056 3.020 2.986 2.951 2.918 2.885 2.853 2.821 2.790 2.759 2.729 2.700 2.671 2.643 2.615 2.588 2.561 2.534 2.508 2.483 2.458 2.433 2.409 2.385 2.362 2.339 2.316 2.294 2.272 2.251 2.229 2.209 2.188 2.168 2.148 2.129 2.109 2.091 2.072 2.054 2.036 2.018 2.000 1.983 1.966 1.949 1.933 1.917 1.901 1.885 1.870 1.854 1.839 1.824 Rate 50.5% 51.0% 51.5% 52.0% 52.5% 53.0% 53.5% 54.0% 54.5% 55.0% 55.5% 56.0% 56.5% 57.0% 57.5% 58.0% 58.5% 59.0% 59.5% 60.0% 60.5% 61.0% 61.5% 62.0% 62.5% 63.0% 63.5% 64.0% 64.5% 65.0% 65.5% 66.0% 66.5% 67.0% 67.5% 68.0% 68.5% 69.0% 69.5% 70.0% 70.5% 71.0% 71.5% 72.0% 72.5% 73.0% 73.5% 74.0% 74.5% 75.0% 75.5% 76.0% 76.5% 77.0% 77.5% 78.0% 78.5% 79.0% 79.5% 80.0% 80.5% 81.0% 81.5% 82.0% 82.5% 83.0% 83.5% 84.0% 84.5% 85.0% 85.5% 86.0% 86.5% 87.0% 87.5% 88.0% 88.5% 89.0% 89.5% 90.0% 90.5% 91.0% 91.5% 92.0% 92.5% 93.0% 93.5% 94.0% 94.5% 95.0% 95.5% 96.0% 96.5% 97.0% 97.5% 98.0% 98.5% 99.0% 99.5% 100.0% Periods 3 1.399 1.391 1.383 1.375 1.368 1.360 1.352 1.345 1.337 1.330 1.323 1.315 1.308 1.301 1.294 1.287 1.280 1.273 1.266 1.260 1.253 1.247 1.240 1.234 1.227 1.221 1.214 1.208 1.202 1.196 1.190 1.184 1.178 1.172 1.166 1.160 1.155 1.149 1.143 1.138 1.132 1.127 1.121 1.116 1.111 1.105 1.100 1.095 1.090 1.085 1.079 1.074 1.069 1.064 1.060 1.055 1.050 1.045 1.040 1.036 1.031 1.026 1.022 1.017 1.013 1.008 1.004 0.999 0.995 0.991 0.986 0.982 0.978 0.974 0.969 0.965 0.961 0.957 0.953 0.949 0.945 0.941 0.937 0.933 0.930 0.926 0.922 0.918 0.914 0.911 0.907 0.903 0.900 0.896 0.893 0.889 0.885 0.882 0.878 0.875 If off the chart use 100% 4 1.594 1.584 1.573 1.563 1.553 1.542 1.532 1.523 1.513 1.503 1.494 1.484 1.475 1.466 1.457 1.447 1.439 1.430 1.421 1.412 1.404 1.395 1.387 1.379 1.371 1.362 1.354 1.347 1.339 1.331 1.323 1.316 1.308 1.301 1.293 1.286 1.279 1.272 1.265 1.258 1.251 1.244 1.237 1.230 1.224 1.217 1.210 1.204 1.198 1.191 1.185 1.179 1.172 1.166 1.160 1.154 1.148 1.143 1.137 1.131 1.125 1.120 1.114 1.108 1.103 1.097 1.092 1.087 1.081 1.076 1.071 1.066 1.061 1.055 1.050 1.045 1.040 1.036 1.031 1.026 1.021 1.016 1.012 1.007 1.002 0.998 0.993 0.989 0.984 0.980 0.975 0.971 0.967 0.962 0.958 0.954 0.950 0.946 0.942 0.938 5 1.724 1.711 1.698 1.686 1.674 1.662 1.650 1.638 1.626 1.615 1.604 1.592 1.581 1.570 1.560 1.549 1.539 1.528 1.518 1.508 1.498 1.488 1.478 1.468 1.459 1.449 1.440 1.431 1.422 1.413 1.404 1.395 1.386 1.378 1.369 1.361 1.352 1.344 1.336 1.328 1.320 1.312 1.304 1.297 1.289 1.281 1.274 1.267 1.259 1.252 1.245 1.238 1.231 1.224 1.217 1.210 1.204 1.197 1.190 1.184 1.177 1.171 1.165 1.158 1.152 1.146 1.140 1.134 1.128 1.122 1.116 1.111 1.105 1.099 1.094 1.088 1.082 1.077 1.072 1.066 1.061 1.056 1.050 1.045 1.040 1.035 1.030 1.025 1.020 1.015 1.010 1.006 1.001 0.996 0.992 0.987 0.982 0.978 0.973 0.969 6 1.810 1.795 1.781 1.767 1.753 1.740 1.726 1.713 1.700 1.687 1.674 1.662 1.649 1.637 1.625 1.613 1.602 1.590 1.579 1.567 1.556 1.545 1.534 1.524 1.513 1.503 1.492 1.482 1.472 1.462 1.452 1.443 1.433 1.424 1.414 1.405 1.396 1.387 1.378 1.369 1.361 1.352 1.344 1.335 1.327 1.319 1.311 1.303 1.295 1.287 1.279 1.272 1.264 1.256 1.249 1.242 1.235 1.227 1.220 1.213 1.206 1.199 1.193 1.186 1.179 1.173 1.166 1.160 1.153 1.147 1.141 1.135 1.129 1.123 1.117 1.111 1.105 1.099 1.093 1.087 1.082 1.076 1.071 1.065 1.060 1.054 1.049 1.044 1.039 1.033 1.028 1.023 1.018 1.013 1.008 1.003 0.999 0.994 0.989 0.984 Factor 0.942 0.946 0.950 0.954 0.958 0.962 0.967 0.971 0.975 0.980 0.984 0.989 0.993 0.998 1.002 1.007 1.012 1.016 1.021 1.026 1.031 1.036 1.040 1.045 1.050 1.055 1.061 1.066 1.071 1.076 1.081 1.087 1.092 1.097 1.103 1.108 1.114 1.120 1.125 1.131 1.137 1.143 1.148 1.154 1.160 1.166 1.172 1.179 1.185 1.191 1.198 1.204 1.210 1.217 1.224 1.230 1.237 1.244 1.251 1.258 1.265 1.272 1.279 1.286 1.293 1.301 1.308 1.316 1.323 1.331 1.339 1.347 1.354 1.362 1.371 1.379 1.387 1.395 1.404 1.412 1.421 1.430 1.439 1.447 1.457 1.466 1.475 1.484 1.494 1.503 1.513 1.523 1.532 1.542 1.553 1.563 1.573 1.584 1.594 1.605 1.616 1.627 1.638 1.649 1.660 1.672 1.684 1.695 1.707 1.720 1.732 1.744 1.757 1.769 1.782 1.795 1.809 1.822 1.836 1.849 1.863 1.877 1.892 1.906 1.921 1.935 1.951 1.966 1.981 1.997 2.013 2.029 2.045 2.062 2.079 2.096 2.113 2.130 2.148 2.166 2.185 2.203 2.222 2.241 2.260 2.280 2.300 2.320 2.341 2.362 2.383 2.404 2.426 2.448 2.471 2.494 2.517 2.540 2.564 2.589 2.613 2.639 2.664 2.690 2.716 2.743 2.770 2.798 2.826 2.855 2.884 2.914 2.944 2.974 3.006 3.037 3.070 3.102 3.136 3.170 3.204 3.240 3.276 3.312 3.349 3.387 3.426 3.465 3.505 3.546 3.588 3.630 3.673 3.717 3.762 3.808 3.854 3.902 3.950 3.789 Interest Rate 100.0% 99.5% 99.0% 98.5% 98.0% 97.5% 97.0% 96.5% 96.0% 95.5% 95.0% 94.5% 94.0% 93.5% 93.0% 92.5% 92.0% 91.5% 91.0% 90.5% 90.0% 89.5% 89.0% 88.5% 88.0% 87.5% 87.0% 86.5% 86.0% 85.5% 85.0% 84.5% 84.0% 83.5% 83.0% 82.5% 82.0% 81.5% 81.0% 80.5% 80.0% 79.5% 79.0% 78.5% 78.0% 77.5% 77.0% 76.5% 76.0% 75.5% 75.0% 74.5% 74.0% 73.5% 73.0% 72.5% 72.0% 71.5% 71.0% 70.5% 70.0% 69.5% 69.0% 68.5% 68.0% 67.5% 67.0% 66.5% 66.0% 65.5% 65.0% 64.5% 64.0% 63.5% 63.0% 62.5% 62.0% 61.5% 61.0% 60.5% 60.0% 59.5% 59.0% 58.5% 58.0% 57.5% 57.0% 56.5% 56.0% 55.5% 55.0% 54.5% 54.0% 53.5% 53.0% 52.5% 52.0% 51.5% 51.0% 50.5% 50.0% 49.5% 49.0% 48.5% 48.0% 47.5% 47.0% 46.5% 46.0% 45.5% 45.0% 44.5% 44.0% 43.5% 43.0% 42.5% 42.0% 41.5% 41.0% 40.5% 40.0% 39.5% 39.0% 38.5% 38.0% 37.5% 37.0% 36.5% 36.0% 35.5% 35.0% 34.5% 34.0% 33.5% 33.0% 32.5% 32.0% 31.5% 31.0% 30.5% 30.0% 29.5% 29.0% 28.5% 28.0% 27.5% 27.0% 26.5% 26.0% 25.5% 25.0% 24.5% 24.0% 23.5% 23.0% 22.5% 22.0% 21.5% 21.0% 20.5% 20.0% 19.5% 19.0% 18.5% 18.0% 17.5% 17.0% 16.5% 16.0% 15.5% 15.0% 14.5% 14.0% 13.5% 13.0% 12.5% 12.0% 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Interest Rate 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0% 15.5% 16.0% 16.5% 17.0% 17.5% 18.0% 18.5% 19.0% 19.5% 20.0% 20.5% 21.0% 21.5% 22.0% 22.5% 23.0% 23.5% 24.0% 24.5% 25.0% 25.5% 26.0% 26.5% 27.0% 27.5% 28.0% 28.5% 29.0% 29.5% 30.0% 30.5% 31.0% 31.5% 32.0% 32.5% 33.0% 33.5% 34.0% 34.5% 35.0% 35.5% 36.0% 36.5% 37.0% 37.5% 38.0% 38.5% 39.0% 39.5% 40.0% 40.5% 41.0% 41.5% 42.0% 42.5% 43.0% 43.5% 44.0% 44.5% 45.0% 45.5% 46.0% 46.5% 47.0% 47.5% 48.0% 48.5% 49.0% 49.5% 50.0% 50.5% 51.0% 51.5% 52.0% 52.5% 53.0% 53.5% 54.0% 54.5% 55.0% 55.5% 56.0% 56.5% 57.0% 57.5% 58.0% 58.5% 59.0% 59.5% 60.0% 60.5% 61.0% 61.5% 62.0% 62.5% 63.0% 63.5% 64.0% 64.5% 65.0% 65.5% 66.0% 66.5% 67.0% 67.5% 68.0% 68.5% 69.0% 69.5%