Fill in the blank cells of the

Explanation of Solution
Projected income statement: The projected income
Fill in the blank cells of the projected income statement:
Company D | ||||
Projected Income Statement | ||||
For One Year | ||||
Status Quo: | % Increase | Alternative | ||
Single Product | (Decrease) | Two Products | Difference | |
Sales revenue | $375,000 (a) | 20% (b) | $450,000 | $75,000 (c) |
Costs | ||||
Equipment lease | $100,000 | 10% | $110,000 | $10,000 |
Labor | 72,000 (d) | 30% (e) | $93,600 | $21,600 (f) |
Rent | 12,500 (g) | 20% | $15,000 | $2,500 (h) |
$20,000 | 5% | $21,000 (i) | $1,000 (j) | |
Utilities | $55,000 | (k) | l | (m) |
Other | $20,000 | (n) | o | (p) |
Total costs | $279,500(q) | $330,600 (r) | $51,100 (s) | |
Operating profit | $95,500 | $119,400 (t) | $23,900 |
Table (1)
Working note 1:
Compute the value of (a):
Working note 2:
Compute the value of (b):
Working note 3:
Compute the value of (c):
Working note 4:
Compute the value of (d):
Working note 5:
Compute the value of (e):
Working note 5:
Compute the value of (f):
$21,600 is given in the problem.
Working note 6:
Compute the value of (g):
Working note 6:
Compute the value of (h):
Working note 7:
Compute the value of (i):
Working note 8:
Compute the value of (j):
Working note 9:
Compute the value of (k-p):
The values from “k” to “p” cannot be determined separately. The total cost for utilities and other labor under enhanced service can be calculated as $91,000
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Chapter 1 Solutions
FUNDAMENTAL'S OF COST ACCOUNTING LL
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