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Read the requirements.

Requirements

What is the projected net income for $2020?$

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

Mr$.$ Barnes has set the revenue target for $2021$ at a level of $$594,000($or $22,000$ bowls$).$

He believes an additional marketing cost of $$47,250$ 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 $$47,250$ is spent and the revenue target is met?

What is the breakeven point in revenues for $2021$ if the additional $$47,250$ is spent

for advertising?

If the additional $$47,250$ is spent, what are the required $2021$ revenues for $2021$ net

income to equal $2020$ net income?

At a sales level of $22,000$ units, what maximum amount can be spent on advertising if a

$2021$ net income of $$59,850$ is desired?

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

Using the equation method, select the basic formula used to compute the target net income for $2020.$

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

$$,16,000$

Marketing, distribution, and customer service

Total fixed costs

Selling price

Expected sales, $20,500$ units

Income tax rate