A. Lo and Company, a manutachurer of quality handmade walhut bowls, has had a steady growth in sales for the past 5 years. However, increased compettion has led Mr. Lo, the president, to believe that an aggressive marketing campaign wil be necessary next year to maintain the company's present growth. To prepare for next year's marketing campsign, the corrpanys controller has prepared and presented Mr. Lo with the foliowing data for the current year, 2020 : (Click the icon to view the data.) Read the tequirements: 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 . The target net income for 2020 is Requirement 2 . What is the breakeven point in units for 2020 ? Determine the formula that is used to compute how many bowls are needed to break even, then compute the number of bowls needed. (Enter applicable values to the nearest cent, \$X.xo) Requirement 3. Mr. Lo has set the revenue target for 2021 at a level of $672,000 (cr 24,000 bows). He believes an additional marketing cost of $33,880 tor advertising in 2021 , with al other costs remaining constant, will be necessary to attain the revenue target. What is the net income for 2021 if the addisconal $33,880 is spent and the revenue target is met? The target net income for 2021 is Requirement 4. What is the breakeven point in revenues for 2021 if the additinal $33,850 is spent for advertising? (Do not round any of your calculations.) The breakeven point in revenues for 2021 is Data table A.S. Lo and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has bed Mr. Lo, the president, to believe that an aggressive markoting campaign wit be necessary next year to maintain the company's present growh. To prepare for next year's marketing carnpaign, the company's controller has prepared and presented Mr. Lo with the following data for the current year, 2020 - (Click the icon to view the data) Read the requirements. Requirement 3. Mr. Lo hiss set the revenue target for 2021 at a level of $672,000 (or 24,000 bowls). He beleves an additional marketing cost of $33,880 for advertising in 2021 , wim all other costs remaining constant, well be necessary to attain the revenue target. What is the net income for 2021 if the additional $33,880 is spent and the revenue target is met? The tarpet net income for 2021 is Requirement 4. What is the breakeven point in revenues for 2021 if the addibional $33,880 is spent for advertising? (Do not round any of your calculations) The breakeven point in revenues for 2021 is Requirement 5. If the addibional $33,880 is spent, what are the required 2021 revenues for 2021 net income to equal 2020 net income? Using the basic formula determined in requirement 1, compute the required number of units first, then the required revenue. (Do not round any of your calcalations.) The required number of units is The required revenve is Requirement 6. At a sales level of 24,000 units, what maximum amount can be spent on advertsing if a 2021 net income of $90,402 is desired? (Do not round any of your calculaticns ) Use the basic formula determined in requirement 1. The maximum amount that can be spent on advertsing is
