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THIS IS VERY URGENT. PLEASE HELP ME TO COMPLETE THE LAST REQUIREMENT. THANK YOU!! D . L . Lu and Company, a manufacturer of quality
THIS IS VERY URGENT. PLEASE HELP ME TO COMPLETE THE LAST REQUIREMENT. THANK YOU!!
DL Lu and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past years. However, increased competition has led Mr Lu
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 Lu with the following data for the current year, :
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Read the requirements.
Requirement What is the projected net income for
Using the equation method, select the basic formula used to compute the target net income for
Revenues Variable costs Fixed costs Target net income Tax rate
The target net income for is
Requirement What is the breakeven point in units for
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,
$
Requirement Mr Lu has set the revenue target for at a level of $or bowls He believes an additional marketing cost of $ for advertising in with all
other costs remaining constant, will be necessary to attain the revenue target. What is the net income for if the additional $ is spent and the revenue target is met?
The target net income for is $
Requirement What is the breakeven point in revenues for if the additional $ is spent for advertising? Do not round any of your calculations.
The breakeven point in revenues for is
Requirement If the additional $ is spent, what are the required revenues for net income to equal net income?
Using the basic formula determined in requirement 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
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