company, a manufacturer of quality handmade walnut bowls, has had a steady growth has led Mr. Smith, 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. Smith with the following data for the current year, 2017 Click the icon to view the data) Read the requirements co Requirement 1. What is the projected net income for 2017? Using the equation method, select the basic formula used to compute the target net income for 2017 Revenues Fored costs Variable costs Target net income 1 - Tax rate 52,640 The target net income for 2017 is $ Requirement 2. What is the breakeven point in units for 2017? 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 cont, SXC) Fored costs Contribution margin per bowl - Bowls needed to break even 225 200 32 314 29 e t felds and then click Check Answer LD. Smith and Company manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However increased ent growt has led Mr. Smith, the pe - X 2017: for next year's marketing Data Table E (Click the icon to vie Read the requirements SCO Requirement 1. What is Using the equation meth Variable cost (per bowl) Direct materials Direct manufacturing labor Variable overhead (manufacturing, marketing distribution and customer service) Revenues 3.75 7.50 0.35 11.60 The target net income fo Total variable cost per bowl Fbced costs Manufacturing Requirement 2. What $ Determine the formula th nearest cent, SX XX) Marketing, distribution, and customer service 20,000 206,200 226,200 ppplicable v $ Fixed costs 226 200 Total fixed costs Selling price Expected sales, 19,000 units Income tax rate $ 29.00 551,000 40% 16 ghts Enter any number in the Print Done parts emaining Clear All Final Check MOVIE quirements O Requirements mt 1. What is quation meth nues et income fo nt 2. What is What is the projected net income for 2017? What is the breakeven point in units for 2017? Mr. Smith has set the revenue target for 2018 at a level of $667,000 (or 23.000 bowls) He believes an additional marketing cost of $27.840 for advertising in 2018, with all other costs remaining constant will be necessary to attain the revenue target. What is the net income for 2018 if the additional $27.840 is spent and the revenue target is met? What is the breakeven point in revenues for 2018 if the additional $27.840 is spent for advertising? If the additional $27.840 is spent, what are the required 2018 revenues for 2018 net income to equal 2017 net income? At a sales level of 23,000 units, what maximum amount can be spent on advertising if a 2018 net income of $86,646 is desired? uppli ne formula th $XXX.) Fixed costs 226,200 Done Done umber in the Final CH
