Betty's about to begin work on the budget for 2023 and they have requested that you...

 

 
     

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Betty's about to begin work on the budget for 2023 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. Furthermore, to find the required sales in dollars it may be easier to find the number of units and then multiple by the selling price per unit. 1. For 2023, the selling price per lamp will be $45.00. What is the projected contribution margin and contribution ratio for each lamp sold? Contribution Margin per unit (Round to seven places $XX.XXXXXXX) Contribution Margin Ratio (Round to seven places, % is two of those places XX.XXXXX%) 2. For 2023, the selling price per lamp will be $45.00. How many lamps must be sold to breakeven? Breakeven sales in units (Round up to zero places XXX,XXX units) % Ref # (5.01} {5.02} {5.03) 3. For 2023, the selling price per lamp will be $45.00. The desired operating income in 2023 is $ 276,500. What would sales in units have to be in 2023 to reach the profit goal? Breakeven sales in units (Round up to zero places XXX,XXX units) 4. For 2023, the selling price per lamp will be $45.00. The company would like to have an operating income equal to 26% of sales. If that is to be achieved, what would be the sales in units in 2023? Sales in units (Round up to zero places XXX,XXX units) 5. For 2023, if the company believes that it could only sell 25,000 lamps, what would the new selling price have to be so that the new contribution margin per unit is equal to last year's contribution margin per unit? New Selling Price (Round up to two places $ XXX,XXX.XX) {5.04) {5.05} {5.06} 6. For 2023, the selling price per lamp will be $45.00. How many units must be sold to generate a net income (after tax) of $ 264,000 assuming the tax rate of 40%? Sales in units (Round up to zero places XXX,XXX units) 7. For 2023, if the company believes that the demand will be 27,500 units for the year. What selling price per lamp, rounded to two places, would generate an operating income of $ 824,500? New Selling Price (Round up to two places $ XXX,XXX.XX) {5.07} (5.08} Sales Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable Administrative Expenses: Fixed Variable Total Selling and Administrative Expenses Net Profit Betty's Design Projected Income Statement As of December 31, 2022 25,000 Lamps @ $45.00 $28.93 23,000.00 (Commission per unit) @ $3.15 78,750.00 @ $0.06 42,000.00 1,500.00 $ 1,125,000.00 723,250.00 401,750.00 101,750.00 43,500.00 145,250.00 256,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Betty's Design Projected Balance Sheet As of December 31, 2022 500 @ $9.20 500 @ $1.25 0 3000 @ $28.93 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 20,000.00 6,800.00 12,000.00 141,425.00 $ $ $ $ $ $ 34,710.00 67,500.00 4,600.00 625.00 86,790.00 194,225.00 13,200.00 207,425.00 54,000.00 54,000.00 153,425.00 207,425.00 Betty's about to begin work on the budget for 2023 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. Furthermore, to find the required sales in dollars it may be easier to find the number of units and then multiple by the selling price per unit. 1. For 2023, the selling price per lamp will be $45.00. What is the projected contribution margin and contribution ratio for each lamp sold? Contribution Margin per unit (Round to seven places $XX.XXXXXXX) Contribution Margin Ratio (Round to seven places, % is two of those places XX.XXXXX%) 2. For 2023, the selling price per lamp will be $45.00. How many lamps must be sold to breakeven? Breakeven sales in units (Round up to zero places XXX,XXX units) % Ref # (5.01} {5.02} {5.03) 3. For 2023, the selling price per lamp will be $45.00. The desired operating income in 2023 is $ 276,500. What would sales in units have to be in 2023 to reach the profit goal? Breakeven sales in units (Round up to zero places XXX,XXX units) 4. For 2023, the selling price per lamp will be $45.00. The company would like to have an operating income equal to 26% of sales. If that is to be achieved, what would be the sales in units in 2023? Sales in units (Round up to zero places XXX,XXX units) 5. For 2023, if the company believes that it could only sell 25,000 lamps, what would the new selling price have to be so that the new contribution margin per unit is equal to last year's contribution margin per unit? New Selling Price (Round up to two places $ XXX,XXX.XX) {5.04) {5.05} {5.06} 6. For 2023, the selling price per lamp will be $45.00. How many units must be sold to generate a net income (after tax) of $ 264,000 assuming the tax rate of 40%? Sales in units (Round up to zero places XXX,XXX units) 7. For 2023, if the company believes that the demand will be 27,500 units for the year. What selling price per lamp, rounded to two places, would generate an operating income of $ 824,500? New Selling Price (Round up to two places $ XXX,XXX.XX) {5.07} (5.08} Sales Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable Administrative Expenses: Fixed Variable Total Selling and Administrative Expenses Net Profit Betty's Design Projected Income Statement As of December 31, 2022 25,000 Lamps @ $45.00 $28.93 23,000.00 (Commission per unit) @ $3.15 78,750.00 @ $0.06 42,000.00 1,500.00 $ 1,125,000.00 723,250.00 401,750.00 101,750.00 43,500.00 145,250.00 256,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Betty's Design Projected Balance Sheet As of December 31, 2022 500 @ $9.20 500 @ $1.25 0 3000 @ $28.93 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 20,000.00 6,800.00 12,000.00 141,425.00 $ $ $ $ $ $ 34,710.00 67,500.00 4,600.00 625.00 86,790.00 194,225.00 13,200.00 207,425.00 54,000.00 54,000.00 153,425.00 207,425.00

Answer rating: 100% (QA)

1 Contribution Margin per unit The contribution margin per unit is the selling price per unit minus the variable costs per unit In this case the selling price per lamp is 4500 and the variable costs p... View the full answer