Question 3 C.L. Smith and Company, a manufacturer of quality handmade walnut bowis, 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 / 1 - Tax rate Target net income Fixed costs Revenues Variable costs 62,640 The target net income for 2017 is $ 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, SX.XX.) Fixed costs Contribution margin per bowl Bowis needed to break even 13,000 > 226,200 17.40 Requirement 3. Mr. Smith has set the revenue target for 2018 at a level of $667,000 (or 23,000 bowls). He believes an additional marketing cost of $27,840 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 $27,840 is spent and the revenue target is met? The target net income for 2018 is $ 87.696 Requirement 4. What is the breakeven point in revenues for 2018 if the additional $27,840 is spent for advertising? (Do not round any of your calculations.) The breakeven point in revenues for 2018 is $ termine the formula that is used to com eded/Enter applicable values to the nearest.cent sx xx X - Data Table Lional nue qui 3.25 arke Variable cost (per bowl) 7.00 get! Direct materials 1.35 Direct manufacturing labor round he te $ 11.60 Variable overhead (manufacturing, marketing, distribution and customer service) equi Total variable cost per bowl Fixed costs $ 20,000 he bi Manufacturing 206,200 Marketing, distribution, and customer service $ 226,200 Total fixed costs $ 29.00 Selling price $ 551,000 Expected sales, 19,000 units 40% Income tax rate Print Done