MODULE 6 Cost-Volume-Profit Course Work Assignment - Case Study No.1 Spring 2020/21 R. A. Ro and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past five years. However, increased competition has led Mr. Ro, 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. Ro with the following data for the current year, 2020: $ 3.25 8.00 2.50 $13.75 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 110,000 Total fixed costs Selling price Expected sales, 20,000 units Income tax rate $ 25,000 110,000 $135,000 25.00 $500,000 4036 Required 1. What is the projected net income for 2020? 2. What is the breakeven point in units for 2020? 3. Mr. Ro has set the revenue target for 2011 at a level of $550,000 for 22.000 bowls). He believes an additional marketing cost of $11,250 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 $11,250 is spent and the revenue target is met 4. What is the breakeven point in revenues for 2021 if the additional $11,250 is spent for advertising? 1 5. If the additional $11,250 is spent, what are the required 2012 revenues for 2021 net income to equal 2020 net income? 6. At a sales level of 22,000 units, what maximum amount can be spent on advertising if a 2021 net income of $60,000 is desired? Deadline to sului de course work cam on Sunday, March 28 2021 at 5:00PM (Ils assignment is worth 10% of the final assessment