L.D. 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 led Mr. Lo, 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. Lo with the following data for the current year, 2020: 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. Revenues Variable costs The target net income for 2020 is $ 87,780 Fixed costs = Target net income Requirement 2. What is the breakeven point in units for 2020? 1 - Tax rate C 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 $ 184,800 Contribution margin per bowl 15.40 Bowls needed to break even 12,000 Requirement 3. Mr. Lo has set the revenue target for 2021 at a level of $672,000 (or 24,000 bowls). He believes an additional marketing cost of $33,880 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 $33,880 is spent and the revenue target is met? The target net income for 2021 is $ 90,552 Requirement 4. What is the breakeven point in revenues for 2021 if the additional $33,880 is spent for advertising? (Do not round any of your calculations.) The breakeven point in revenues for 2021 is Requirements Data table Variable cost (per bowl) Direct materials S 3.75 Direct manufacturing labor 8.00 Variable overhead (manufacturing, marketing, distribution and customer service) S 0.85 12.60 Total variable cost per bowl 1. 2. What is the projected net income for 2020? What is the breakeven point in units for 2020? 3. 4. 5. 6. Mr. Lo has set the revenue target for 2021 at a level of $672,000 (or 24,000 bowls). He believes an additional marketing cost of $33,880 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 $33,880 is spent and the revenue target is met? What is the breakeven point in revenues for 2021 if the additional $33,880 is spent for advertising? If the additional $33,880 is spent, what are the required 2021 revenues for 2021 net income to equal 2020 net income? At a sales level of 24,000 units, what maximum amount can be spent on advertising if a 2021 net income of $89,652 is desired? Fixed costs Manufacturing S Marketing, distribution, and customer service 18,000 166,800 $ 184,800 Total fixed costs Selling price S 28.00 Expected sales, 21,500 units S 602,000 Income tax rate 40%