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L.D. Lu and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased

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L.D. Lu 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. Lu, 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. Lu with the following data for the current year, 2020: (Click the icon to view the data.) Read the requirements. 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 L.D. Lu 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. Lu, 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. Lu with the following data for the current year, 2020: (Click the icon to view the data.) Read the requirements. 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 bowis needed. (Enter applicable values to the nearest cent, $X.XX.) Data table Data table 1. What is the projected net income for 2020 ? 2. What is the breakeven point in units for 2020 ? 3. Mr. Lu has set the revenue target for 2021 at a level of $792,000 (or 24,000 bowls). He believes an additional marketing cost of $29,700 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 $29,700 is spent and the revenue target is met? 4. What is the breakeven point in revenues for 2021 if the additional $29,700 is spent for advertising? 5. If the additional $29,700 is spent, what are the required 2021 revenues for 2021 net income to equal 2020 net income? 6. At a sales level of 24,000 units, what maximum amount can be spent on advertising if a 2021 net income of $90,780 is desired

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