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:

Expected increases for $202$

When calculating projected increases round to TWO $($$$0\mathrm{.}00)$ decimal places.

Material Costs are expected to increase by $3\mathrm{.}00\%.$

Labor Costs are expected to increase by $4\mathrm{.}00\%.$

Variable Overhead is expected to increase by $4\mathrm{.}00\%.$

Fixed Overhead is expected to increase to $$285,000.$

Fixed Administrative expenses are expected to increase to $$60,000.$

Variable selling expenses $($measured on a per lamp basis$)$ are expected to increase

by $3\mathrm{.}00\%.$

Fixed selling expenses are expected to be $$31,000$ in $202.$

Variable administrative expenses $($measured a per lamp basis$)$ are expected to

increase by $2\mathrm{.}00\%.$

On the following schedule develop the following figures:

$1-20$x$2$ Projected Variable Manufacturing Unit Cost of a lamp.

$2-20$x$2$ Projected Variable Unit Cost per lamp.

$3-20$x$2$ Projected Fixed Costs.

For $202$ the selling price per lamp will be $$45\mathrm{.}00.$ If the variable cost increase by $$4\mathrm{.}00$ 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$)$

For $202$ the selling price per lamp will be $$45\mathrm{.}00.$ If the variable cost decreased by $$4\mathrm{.}00$ a unit how many lamps

must be sold to breakeven?

If for $202$ the selling price per lamp is increased to $$49\mathrm{.}00$ a unit how many lamps must be sold

to breakeven?

If for $202$ the selling price per lamp is decreased to $$41\mathrm{.}00$ a unit how many lamps must be sold

to breakeven?