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:		$16.0000000	per lamp
	Direct Labor:		2.0000000	per lamp (4 lamps/hr.)
	Variable Overhead:		2.0000000	per lamp
	Fixed Overhead:		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 places.
	1. Material Costs are expected to increase by 2.00% .
	2. Labor Costs are expected to increase by 3.00%.
	3. Variable Overhead is expected to increase by 5.50%.
	4. Fixed Overhead is expected to increase to $265,000.
	5. Fixed Administrative expenses are expected to increase to $60,000.
	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 $33,000 in 20x2.
	8. Variable administrative expenses (measured a per lamp basis) are expected to
	increase by 3.50%.
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.