LD. 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 Me 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 the current year, 2017 (Click the icon to view the data) Read the requirements Requirement 1. What is the projected net income for 2017? Using the equation method, select the basic formula used to compute the target net income for 2017 Revenues Variable costs Target net income The target net income for 2017 is 5 1 - Tax rate Enter any number in the edit Belds and then chok Check Answer P3-51 (similar to) The Coughlin Company retails two products: a standard and a deluxe version of a luggage carrier. The budgeted income statement for next period is as follows: (Click the loon to view the budgeted Income statement.) Read the requirements Requirement 1. Compute the breakeven point in units, assuming that the company achieves its planned sales mix Begin by determining the sales mic. For every 1 deluxe unit(s) sold 105.000 standard units are sold 1 Data Table Standard Carrier 180,000 Deluxe Carrier 60,000 Total 240,000 Units sold Revenues at $30 and 538 per unit Variable costs at $24 and 528 per unit Contribution margins at 56 and $10 per unit 5,400,000 5 4320,000 1,000,000 $ 2.280,000 $ 1,680,000 600,000 7,680,000 6,000,000 1,680,000 1,050,000 630,000 Fbxed costs Operating income Enter any number in the Print Done Final Check y 9 parts remaining Sari Correct: 2 Partial Credit: 1 LD. 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 the current year, 2017 (Click the icon to view the data) Read the requirements Requirement 1. What is the projected net income for 2017? Using the equation method, select the basic formula used to compute the target net income for 2017 Revenues Fixed costs Variable costs Target net income 1 - Tax rate The target net income for 2017 is 5 Enter any number in the edited and then chok Check Answer 7 parts Clear All Check Answer d Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, in mith, the president, to believe that an aggressive marketing campaign will be necessary next year to maintain the company's prese marketing campaign, the company's controller has prepared and presented Mr. Smith with the following data for the current year, icon to vie i Data Table irements X 1. What is sation metho Variable cost (per bowl) Direct materials Direct manufacturing labor 3.75 7.50 0.35 et income for Variable overhead (manufacturing, marketing, distribution and customer service) 11.60 $ Total variable cost per bowl Fored costs Manufacturing Marketing, distribution, and customer service Total forced costs Selling price Expected sales, 19,000 units Income tax rate 20,000 206,200 226,200 $ $ $ 29.00 551,000 40% umber in the Print Done Ans
