R.T. Pan 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. 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, 2020 Click the icon to view the data.) Read the requirements Requirement 1. What is the projected net income for 2020? Using the equation method, select the basic formula used to compute the target net income for 2020. Revenues Variable costs Fixed costs Target net income -Tax rate The targot net income for 2020 is Requirement 2. What is the breakeven point in units for 2020? Determine the formula that is used to compute how many bowls are needed to break even, then compute the number of bowis needed. (Enter applicable values to the nearest cont, $XXX) Bowls needed to break even Requirement 3. Mr. Pan has set the revenue target for 2021 at a level of $690.000 (or 23,000 bowls). He believes an additional marketing cost of $19.440 for advertising in 2021, with all other costs remaining constant will be necessary to attain the revenue target. What is the net income for 2021 the additional $19.440 is spent and the revenue target is met? The target net income for 2021 is Requirement 4. What is the breakeven point in revenues for 2021 if the additional $19,440 is spent for advertising? (Do not round any of your calculations.) The breakeven point in revenues for 2021 is Requirements. If the additional $19,440 is spent, what are the required 2021 revenues for 2021 net income to equal 2020 net income? Using the basic formula determined in requirement 1, compute the required number of units first, then the required revenue. (Do not round any of your Next Requirement 4. What is the breakeven point in revenues for 2021 if the additional $19,440 is spent for advertising? (Do not round any of your calculations.) The breakeven point in revenues for 2021 is Requirement 5. If the additional $19.440 is spent, what are the required 2021 revenues for 2021 net income to equal 2020 net income? Using the basic formula determined in requirement 1. compute the required number of units first, then the required revenue. (Do not round any of your calculations.) The required number of units is The required revenue is Requirement 6. At a sales level of 23,000 units what maximum amount can be spent on advertising it a 2021 net income of $75,066 is desired? (Do not round any of your calculations.) Use the basic formula determined in requirement 1. The maximum amount that can be spent on advertising is Next pany, a manufacturer of quality Mr. Pan, the president, to believe that an aggressive marketing campaign will be necessary next prepare for next year's marketing campaign, the company's controller has prepared and presented Mr. Pan with 320 to vie Data Table ments. What is $ 3.75 n meth 7.00 Variable cost (per bowl) Direct materials Direct manufacturing labor Variable overhead (manufacturing, marketing, distribution and customer service) 3.05 come to $ 13.80 What is eed $ ormula thy arest cer 12,000 214,800 Total variable cost per bowl Fixed costs Manufacturing Marketing, distribution, and customer service Total fixed costs Selling price Expected sales, 19,500 units Income tax rate $ 226,800 $ 30.00 $ 585,000 40% ma len 3. Mr. Pan Jertising id $19,440 is income fd hida 4. What is Print Done en point in - X W Requirements on 1. What is the projected net income for 2020? 2. What is the breakeven point in units for 2020? 3. Mr. Pan has set the revenue target for 2021 at a level of $690,000 (or 23,000 bowls). He believes an additional marketing cost of $19,440 for advertising in 2021, with all other costs remaining constant, will be necessary to attain the revenue target. What is the net income for 2021 if the additional $19,440 is spent and the revenue target is met? 4. What is the breakeven point in revenues for 2021 if the additional $19,440 is spent for advertising? 5. If the additional $19,440 is spent, what are the required 2021 revenues for 2021 net income to equal 2020 net income? 6. At a sales level of 23,000 units, what maximum amount can be spent on advertising if a 2021 net income of $75,066 is desired? orn are -M ert 19. nca Print Done . Requirement 2. What is the breakeven point in units for 2020? Determine the formula that is used to compute how many bowls are n 1 - Tax rate e target for 2021 at a level spent and the revenue targ Contribution margin per bowl Fixed costs t in revenues for 2021 if the Revenue per bowl Target net income spent, what are the required Tax rate ement 1, compute the require Total revenues ] Variable costs per bowl Use the basic formula determined in requin nits, what maximum amount ca