Candlemania, Inc.Financial Projections - 2021Inputs:Section A:Section B:Section C:2020 Actual30,000Change Factors 2021 What-If?0%0%0%0%0%0%0%2021 What-If?Sales in units?Sales price per unitDirect materials cost per unitDirect labor cost per unitVariable overhead cost per unit | $120.00?18.00?16.00?22.00?Fixed costs2$500,000?Target IncomeIncome Projections:$4700,0002020 ActualSales??Less variable expenses:Direct materials??Direct labor?Variable overhead??Total variable expenses??Contribution marginLess fixed expenses????Income before taxesContribution margin per unitContribution margin ratio????Break-even sales in units??Break-even sales in $$??Margin of safety in unitsMargin of safety in sales $$Sales in units to yield target income?????

Since Section B => Change Factors are given as 0% then there will be no change between the…

Candlemania, Inc. Financial Projections - 2021 Section A: %3D Inputs: Section B: Section C: 2020 Actual $ $ $ 2$ 2021 What-If? 0% Change Factors Sales in units 30,000 Sales price per unit Direct materials cost per unit Direct labor cost per unit Variable overhead cost per unit $ 120.00 0% 18.00 0% 0% 0% 0% 16.00 ? 22.00 ? $ $ 2020 Actual Fixed costs 500,000 ? Target Income Income Projections: 700,000 0% ? 2021 What-If? Sales ? Less variable expenses:

Candlemania, Inc. Financial Projections - 2021 Section A: %3D Inputs: Section B: Section C: 2020 Actual $ $ $ 2$ 2021 What-If? 0% Change Factors Sales in units 30,000 Sales price per unit Direct materials cost per unit Direct labor cost per unit Variable overhead cost per unit $ 120.00 0% 18.00 0% 0% 0% 0% 16.00 ? 22.00 ? $ $ 2020 Actual Fixed costs 500,000 ? Target Income Income Projections: 700,000 0% ? 2021 What-If? Sales ? Less variable expenses:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Candlemania, Inc.
Financial Projections - 2021
Inputs:
Section A:
Section B:
Section C:
2020 Actual
30,000
Change Factors 2021 What-If?
0%
0%
0%
0%
0%
0%
0%
2021 What-If?
Sales in units
?
Sales price per unit
Direct materials cost per unit
Direct labor cost per unit
Variable overhead cost per unit | $
120.00
?
18.00
?
16.00
?
22.00
?
Fixed costs
2$
500,000
?
Target Income
Income Projections:
$4
700,000
2020 Actual
Sales
?
?
Less variable expenses:
Direct materials
?
?
Direct labor
?
Variable overhead
?
?
Total variable expenses
?
?
Contribution margin
Less fixed expenses
?
?
?
?
Income before taxes
Contribution margin per unit
Contribution margin ratio
?
?
?
?
Break-even sales in units
?
?
Break-even sales in $$
?
?
Margin of safety in units
Margin of safety in sales $$
Sales in units to yield target income
?
?
?
?
?

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