A.S. Marx 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 led Mr. , the president, to believe that an aggressive marketing campaign will be necessary 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. with the following data for the current year, What is the breakeven point in revenues for if the additional is spent for advertising? (Do not round any of your calculations.) The breakeven point in revenues for 2018 ?

Variable cost (per bowl)

Direct materials

$3.75

Direct manufacturing labor

7.00

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

1.85

Total variable cost per bowl

$12.60

Fixed costs

Manufacturing

$18,000

Marketing, distribution, and customer service

166,800

Total fixed costs

$184,800

Selling price

$28.00

Expected sales, 21,500 units

$602,000

Income tax rate 40%

Requirement 3. Mr. Marx has set the revenue target for 2018 at a level of $672,000 (or 24,000 bowls). He believes advertising in 2018, with all other costs remaining constant, will be necessary to attain the revenue target. What is th spent and the revenue target is met? The target net income for 2018 is $ 90,552 Requirement 4. What is the breakeven point in revenues for 2018 if the additional $33,880 is spent for advertising? The breakeven point in revenues for 2018 is $ 14200