P3-41 (similar to) Question Help L.D. Ko 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. Ko, 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. Ko 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 Fixed costs The target net income for 2017 is $110,880. =Target net income 1 - Tax rate Requirement 2. What is the breakeven point in units for 2017? 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 211,200 Contribution margin per bowl 17.60 Bowls needed to break even 12,000 Requirement 3. Mr. Ko has set the revenue target for 2018 at a level of $784,000 (or 24,500 bowls). He believes an additional marketing cost of $63,360 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 $63,360 is spent and the revenue target is met? The target net income for 2018 is $ Enter any number in the edit fields and then click Check Answer.