Need solutions for 4.08 through 4.15: I See The Light
Projected Income Statement
For the Period Ending December 31, 20x1
	Sales			25,000 lamps	@ $45.00			$1,125,000.00
	Cost of Goods Sold				@ $28.93			723,250.00
	Gross Profit							$ 401,750.00
	Selling Expenses:
		Fixed				$ 23,000.00
		Variable		(Commission per unit)	@ $3.15	78,750.00	$101,750.00
	Administrative Expenses						41,000.00
	Total Selling and Administrative Expenses:							142,750.00
	Net Profit							$ 259,000.00

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

$9.2000000

per lamp

Electrical Sets

1.2500000

per lamp

Lamp Shade

6.0000000

per lamp

Direct Labor:

2.2500000

per lamp (4 lamps/hr.)

Variable Overhead:

0.2250000

per lamp

Fixed Overhead:

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 4.50%.

3. Variable Overhead is expected to increase by 2.00%.

4. Fixed Overhead is expected to increase to $260,000.

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 5.00%.

7. Fixed Administrative expenses are expected to increase by $14,000.

The total administrative expenses for 20x0 were $40,920.00, when

23,000 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 6.50%. The total administrative expenses for 20x0 were

$40,920.00, when 23,000 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.

Total Variable Cost Per Unit
	20x1 Cost	Projected Percent Increase	20x2 Cost Rounded to 7 Decimal Places
Variable Selling	3.15	5	3.3075000	{4.07}
Variable Administrative 20x1	0.0400000			{4.08}
Variable Administrative 20x2				{4.09}
Projected Variable Manufacturing Unit Cost				{4.06}
Projected Total Variable Cost Per Unit				{4.10}
Schedule of Fixed Costs
	20x1 Cost	Projected Increase	20x2 Cost Rounded to 2 Decimal Places
Fixed Overhead	10		$ 260,000.00	{4.11}
(normal capacity of _________ lamps @ __ )
Fixed Selling			$ 31,000.00	{4.12}
Fixed Administrative 20x1				{4.13}
Fixed Administrative 20x2				{4.14}
Projected Total Fixed Costs				{4.15}