Accounting-Below is a question I will like a working for to find the undermentioned figures
by ella | Aug 20, 2025 | Business
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Below is a question I will like a working for to find the undermentioned figures. There is also an attachment that might provide more info. I will appreciate a step by step working feedback. Thanks
Big Al is about to begin work on the budget for 20×2 and they have requested that you prepare an analysis
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based on the following assumptions.
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Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round
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up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the
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number of units and then multiply by the selling price per unit.
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For 20×2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution
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margin ratio for each lamp sold?
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Contribution Margin per unit (Round to two places)
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Contribution Margin Ratio (Round to four places,% is two of those places %)
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For 20×2 the selling price per lamp will be $45.00. The desired net income in 20×2 is $192,500 . What
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would sales in units have to be in 20×2 to reach the profit goal?
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Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)
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For 20×2 the selling price per lamp will be $45.00. If the fixed cost increase by $50,000.00 how many lamps
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must be sold to breakeven?
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Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed)
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Big Al is about to begin work on
the budget for 20×2 and they have requested that you prepare an analysis
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based on the following
assumptions.
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Note: Remember, that we cannot sell part of a
lamp, therefore to find the number of units you have to round
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up to the next complete unit. Furthuremore, to find the required sales in
dollars it may be easier to find the
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number of units and then multiply by the selling
price per unit.
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For 20×2 the selling price per
lamp will be $45.00. What is the
projected contribution margin and contribution
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margin ratio for each lamp sold?
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Contribution Margin
per unit (Round to two places)
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Contribution Margin
Ratio (Round to four places,% is two of those places %)
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For 20×2 the selling price per
lamp will be $45.00. The desired net
income in 20×2 is $192,500 . What
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would sales in units have to be in
20×2 to reach the profit goal?
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Breakeven sales in
units(Since we cannot sell
part of a unit round up to the next unit if needed)
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For 20×2 the selling price per
lamp will be $45.00. If the fixed cost
increase by $50,000.00 how many lamps
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must be sold to breakeven?
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Breakeven sales in
units(Since we cannot sell
part of a unit round up to the next unit if needed)
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Additional Info
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The projected cost of a lamp is
calculated based upon the projected
increases or decreases to
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current costs. The present costs to manufacture one lamp
are:
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Lamp Kit:
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$16.0000000
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per lamp
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Direct Labor:
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2.0000000
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per lamp (4 lamps/hr.)
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Variable Overhead:
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2.0000000
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per lamp
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Fixed Overhead:
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10.0000000
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per lamp (based on normal capacity
of 25,000 lamps)
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Cost per lamp:
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$30.0000000
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per lamp
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Expected increases for 20×2
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When calculating projected
increases round to TWO ($0.00) decimal places.
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1.
Material Costs are expected to increase by 4.00% .
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2.
Labor Costs are expected to increase by 3.00%.
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3.
Variable Overhead is expected to increase by 2.50%.
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4.
Fixed Overhead is expected to increase to $285,000.
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5.
Fixed Administrative expenses are expected to increase to $48,000.
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6.
Variable selling expenses (measured on a per lamp basis) are expected
to increase
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by 3.50%.
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7.
Fixed selling expenses are expected to be $33,000 in 20×2.
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8.
Variable administrative expenses (measured a per lamp basis) are
expected to
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increase by 3.50%.
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On the following schedule develop
the following figures:
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1-
20×2 Projected Variable Manufacturing Unit Cost of a lamp.
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2-
20×2 Projected Variable Unit Cost per lamp.
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3-
20×2 Projected Fixed Costs.
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Current Assets
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Cash
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$
34,710.00
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Accounts Receivable
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67,500.00
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Inventory
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Raw Material
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Lamp Kits
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500
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@
$16.00
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8,000.00
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Work in Process
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0
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–
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Finished Goods
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3000
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@
$30.00
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90,000.00
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Total Current Assets
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$
200,210.00
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Fixed Assets
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Equipment
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$
20,000.00
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Accumulated
Depreciation
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6,800.00
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Total Fixed Assets
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13,200.00
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Total Assets
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$
213,410.00
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Current Liabilities
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Accounts Payable
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$
54,000.00
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Total Liabilities
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$
54,000.00
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Stockholder’s Equity
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Common Stock
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$
12,000.00
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Retained Earnings
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147,410.00
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Total Stockholder’s Equity
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159,410.00
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Total Liabilities and Stockholder’s Equity
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$
213,410.00
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