% P3-41 (algo) s Question Help V.L. Pan and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 vears. However, increased competition has led Mr. Pan, the presider wth. To prepare for next year's marketing campai Data Table (Click the icon to vie Read the requirements. nearest cent, $X.XX.) Variable cost (per bowl) Fixed costs Direct materials $ 3.50 $ 285,600 Direct manufacturing labor 7.50 2.60 Variable overhead (manufacturing, marketing, distribution and customer service) Requirement 3. Mr. Pan advertising in 2018, with spent and the revenue ta of $12,240 for additional $12,240 is $ 13.60 Total variable cost per bowl Fixed costs The target net income fo Manufacturing $ 15,000 Requirement 4. What is Marketing, distribution, and customer service 270,600 calculations.) 285,600 $ The breakeven point in Total fixed costs $ 34.00 Requirement 5. If the ad Selling price Expected sales, 21,000 units $ Using the basic formula 714,000 40% Income tax rate of your calculations.) The required number of Print Done Enter any number in the 2 pemaining Clear All Clear All Check Answer V.L. Pan 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. Pan, 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. Pan with the following data for the current year, 2017: (Click the icon to view the data.) Read the requirements. nearest cent, $X.XX.) Requirements Fixed costs $ 285,600 Requirement 3. Mr. Pan has advertising in 2018, with all ot| spent and the revenue target 1. 2. ng cost of $12,240 for 18 if the additional $12,240 is 3. The target net income for 201 Requirement 4. What is the What is the projected net income 2017? What is the breakeven point in units for 2017? Mr. Pan has set the revenue target for 2018 at a level of $816,000 (or 24,000 bowls). He believes an additional marketing cost of $12,240 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 $12,240 is spent and the revenue target is met? What is the breakeven point in revenues for 2018 if the additional $12,240 is spent for advertising? If the additional $12,240 is spent, what are the required 2018 revenues for 2018 net income to equal 2017 net income? At a sales level of 24,000 units, what maximum amount can be spent on advertising if a 2018 net income of $114,306 is desired? 4. f your calculations.) The breakeven point in reven 5. Requirement 5. If the addition 6. Using the basic formula deter nd any of your calculations.) The required number of units Print Done Enter any number in the edit Tields and then click Check Answer. ? parts remaining Clear All Check
