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S . L . Brown and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5

S.L. Brown 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. Brown, 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. Brown with the following data for the current year, 2020:
(Click the icon to view the data.)
Data table
What is the projected net income for 2020?
What is the breakeven point in units for 2020?
Mr. Brown has set the revenue target for 2021 at a level of $672,000(or 24,000 bowls).
He believes an additional marketing cost of $33,880 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 $33,880 is spent and the revenue target is met?
What is the breakeven point in revenues for 2021 if the additional $33,880 is spent for
advertising?
If the additional $33,880 is spent, what are the required 2021 revenues for 2021 net
income to equal 2020 net income?
At a sales level of 24,000 units, what maximum amount can be spent on advertising if a
2021 net income of $89,802 is desired?
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