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Read the requirements.

Requirements

$1.$ What is the projected net income for $2020?$

$2.$ What is the breakeven point in units for $2020?$

$3.$ Mr$.$ Ko has set the revenue target for $2021$ at a level of $\backslash (\backslash$$ $672,000\backslash )($or $24,000$ bowls$).$ He believes an additional marketing cost of $\backslash (\backslash$$ $33,880\backslash )$ for advertising in $2021,$ with all other costs remaining constant, will be necessary to attain the revenue target. What is the net income for $2021$ if the additional $\backslash (\backslash$$ $33,880\backslash )$ is spent and the revenue target is met?

$4.$ What is the breakeven point in revenues for $2021$ if the additional $\backslash (\backslash$$ $33,880\backslash )$ is spent for advertising?

$5.$ If the additional $\backslash (\backslash$$ $33,880\backslash )$ is spent, what are the required $2021$ revenues for $2021$ net income to equal $2020$ net income?

$6.$ At a sales level of $24,000$ units, what maximum amount can be spent on advertising if a $2021$ net income of $\backslash (\backslash$$ $89,502\backslash )$ is desired?

$1$

Data table

Variable cost $($per bowl$)$

Direct materials

Direct manufacturing labor

Variable overhead $($manufacturing$,$ marketing, distribution and customer service$)$

Total variable cost per bowl

Fixed costs

Manufacturing

Marketing, distribution, and customer service

Total fixed costs

Selling price

Expected sales, $21,500$ units

Income tax rate