stion list Data table K B.C. Lo 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. Lo, 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. Lo with the following data for the current year, 2020: Requirements Variable cost (per bowl) Direct materials $ 3.00 1. What is the projected net income for 2020? Direct manufacturing labor 2. 8.00 What is the breakeven point in units for 2020? Variable overhead (manufacturing, marketing, distribution and 3.40 customer service) $ 14.40 Total variable cost per bowl 4. Fixed costs Manufacturing $ 16,000 5. 195,200 Marketing, distribution, and customer service 6. S 211,200 Total fixed costs 3. Mr. Lo has set the revenue target for 2021 at a level of $784,000 (or 24,500 bowls). He believes an additional marketing cost of $63,360 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 $63,360 is spent and the revenue target is met? What is the breakeven point in revenues for 2021 if the additional 563,360 is spent for advertising? If the additional $63,360 is spent, what are the required 2021 revenues for 2021 net Income to equal 2020 net income? At a sales level of 24,500 units, what maximum amount can be spent on advertising if a 2021 net income of $93,684 is desired? Selling price $ 32.00 Expected sales, 22,500 units $ 720,000 Income tax rate 40% Print Done