I am very confused on how the break even point is $391,500. The formula our textbook gives us for breakeven point revenue is: Fixed costs / contribution margin ratio. I first solved for the contribution margin by using this formula: CM/Revenue but I kept getting the answer wrong. someone please help.

Data Table X ets 3.00 8.50 arest cent, $ needed r bowl 2.00 13.50 level of itional $ 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, 20,500 units Income tax rate g in 2018, w 16,000 132,500 148,500 the add 27.00 $ 553,500 uired 201 40% required Print Done r. Clear All Save Homework: Chapter 3 Homework Score: 0.75 of 1 pt 3 of 5 (3 complete) HW Score: 27.04%, 1.89 of 7 pts % P3-41 (similar to) Question Help J.T. Smith 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. Smith, 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. Smith with the following data for current year, 2017: (Click the icon to view the data.) Read the requirements. Revenues Variable costs Fixed costs Target net income 1 - Tax rate The target net income for 2017 is $ 76,950 Requirement 2. What is the breakeven point in units for 2017? 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.XX.) Fixed costs Contribution margin per bowl Bowls needed to break even $ 148,500 13.50 11,000 Requirement 3. Mr. Smith has set the revenue target for 2018 at a level of $594,000 (or 22,000 bowls). He believes an additional marketing cost of $47,250 for advertising in 2018, with all other costs remaining constant, will be necessary to attain the revenue target. What is the net income for 2018 if the additional $47,250 is spent and the revenue target is met? The target net income for 2018 is $ 60,750 Requirement 4. What is the breakeven point in revenues for 2018 if the additional $47,250 is spent for advertising? (Do not round any of your calculations.) The breakeven point in revenues for 2018 is $ 391,500 Requirement 5. If the additional $47,250 is spent, what are the required 2018 revenues for 2018 net income to equal 2017 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 calculations.) The required number of units is Enter any number in the edit fields and then click Check