$3-41$ CVP analysis, income taxes. $($CMA$,$ adapted$)$ J$.$T$.$ Brooks and Company, a manufacturer of qual$-$

ity handmade walnut bowls, has had a steady growth in sales for the past $5$ years. However, increased

competition has led Mr$.$ Brooks, the president, to believe that an aggressive marketing campaign will be neces$-$

sary next year to maintain the company's present growth. To prepare for next year's marketing campaign, the

company's controller has prepared and presented Mr$.$ Brooks with the following data for the current year, $2020$:

What is the projected net income for $2020?$

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

Mr$.$ Brooks has set the revenue target for $2021$ at a level of $$875,000($or $25,000$ bowls$).$ He believes an

additional marketing cost of $$16,500$ 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 $$16,500$ is

spent and the revenue target is met?

What is the breakeven point in revenues for $2021$ if the additional $$16,500$ is spent for advertising?

If the additional $$16,500$ is spent, what are the required $2021$ revenues for $2021$ net income to equal $2020$

net income?

At a sales level of $25,000$ units, what maximum amount can be spent on advertising if a $2021$ net income

of $$108,450$ is desired?