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Question 1: Patricia Gomez owns a company called Ceram-Lite which manufactures ceramic kitchenware. Over the past 10 years, Ceram-Lite has enjoyed steady growth. However, recently,

image text in transcribed Question 1: Patricia Gomez owns a company called Ceram-Lite which manufactures ceramic kitchenware. Over the past 10 years, Ceram-Lite has enjoyed steady growth. However, recently, there has been increased competition in kitchenware as a result of successful TV shows like Celebrity Chef. Gomez, Ceram-Lite's CEO, believes an aggressive strategy will be needed to meet the company's goals. You have been provided with the following information for the current year (2022) for CeramLite's flagship Dutch Oven dish, which Gomez has indicated will be the focus product for the upcoming holiday season: Questions: 1a: What is the projected operating income for 2022? 1b : What is the project net income for 2022 ? 2. What is the Breakeven Point in units for 2022? 3. If the revenue target for 2023 is 60,000 dutch ovens, then there will be an additional marketing cost of $27,500. All other costs will remain constant. What will be net income for 2023 if the additional $27,500 is spent and the revenue target is met? 4. What is the Breakeven Point in revenues for 2023 with the additional $27,500 spent for advertising? 5. If the additional $27,500 is spent, what are the required 2023 revenues for 2023 net income to equal 2022 net income? Read this question carefully. You may find a diagram helpful to figure out what this question is asking **

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