R.T. 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.) i Requirements Read the requirements. advertising in 2018, with all other costs remaining constant, WiII DE spent and the revenue target is met? 1. What is the projected net income for 2017? The target net income for 2018 is $ 84,630 2. What is the breakeven point in units for 2017? Requirement 4. What is the breakeven point in revenues for 2018 Mr. Ko has set the revenue target for 2018 at a level of $728,500 (or 23,500 bowls). He believes an additional marketing cost of $52,700 for advertising in 2018, with all other costs remaining constant, will be necessary to attain the revenue target. What is the net The breakeven point in revenues for 2018 is $ 446,400 income for 2018 if the additional $52,700 is spent and the revenue target is met? Requirement 5. If the additional $52,700 is spent, what are the re What is the breakeven point in revenues for 2018 if the additional $52,700 is spent for advertising? Using the basic formula determined in requirement 1, compute the 5. If the additional $52,700 is spent, what are the required 2018 revenues for 2018 net income to equal 2017 net income? The required number of units is 25,400 . 6. At a sales level of 23,500 units, what maximum amount can be spent on advertising if a 2018 net income of $84,330 is desired? The required revenue is $ . Print Done Enter any number in the edit fields and then click Check Answ Variable cost (per bowl) Direct materials 3.25 Direct manufacturing labor 7.50 4.75 Variable overhead (manufacturing, marketing, distribution and customer service) 15.50 Total variable cost per bowl Fixed costs Manufacturing $ 14,000 156,500 Marketing, distribution, and customer service $ 170,500 Total fixed costs Selling price Expected sales, 22,000 units $ $ 31.00 682,000 40% Income tax rate