Question

V.L. Barnes 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. Barnes, 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. Barnes with the following data for the current year, 2017: (Click the icon to view the data.) Read the requirements. Requirement 1. What is the projected 1 Requirements Using the equation method, select the Revenues - Variable The target net income for 2017 is $ 1. What is the projected net income for 2017? 2. What is the breakeven point in units for 2017? Mr. Barnes has set the revenue target for 2018 at a level of $792,000 (or 24,000 bowls). He believes an additional marketing cost of $29,700 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 $29,700 is spent and the revenue target is met? 4. What is the breakeven point in revenues for 2018 if the additional $29,700 is spent for advertising? 5. If the additional $29,700 is spent, what are the required 2018 revenues for 2018 net income to equal 2017 net income? 6. At a sales level of 24,000 units, what maximum amount can be spent on advertising if a 2018 net income of $90,330 is desired? Print Done Enter any number in the edit fields and then CICK CHECK Answer.
I just need the answers for 3-6 please! thank you :)

Answer 1

Problem 3

	Particulars	Amount	units	price per unit	Total
	sales		24000	33	792000
less ;	variable cost		24000	16.5	396000
	Direct Materials	3.5
	Direct Manufacturing labour	8.5
	variable overhead	4.5
	contribution				396000
less ;	Fixed cost
	Manufacturing		18000
	marketing & distribution		196500
	Additional marketing		29700
	total Fixed Cost				244200
	Net operating income				151800
less ;	income tax (@40% on net operating income				60720
	Net Income				91080

problem 6

maximum amount that can be spent on advertising to earn profit of 90330

net operating income = 90330/60% = 150550

maximum amt spent on advertising in addition to the 29700 = 151800 - 150550 = 1250

total additional expense that can be sent = 29700+1250 = 30950

problemy In 2018 fixed cost = 244200 contribution per unit = 33-16.5 216.5 cm ratio: 16.5 100- 50% YEPE Qu4zo0 Bolak even (in units) - 765 14800 unile in revenues पप२०० 50'. if 4884oo SHO RAJ.

Problem 5

	Marginal Income statement for year 2017
	Particulars	Amount	units	price per unit	Total
	sales		23000	33	759000
less ;	variable cost		23000	16.5	379500
	Direct Materials	3.5
	Direct Manufacturing labour	8.5
	variable overhead	4.5
	contribution				379500
less ;	Fixed cost
	Manufacturing		18000
	marketing & distribution		196500
	total Fixed Cost				214500
	Net operating income				165000
less ;	income tax (@40% on net operating income				66000
	Net Income				99000

To obtain same income as per 2017

           Net operating income in 2018 = 165000

Required revenue = ( fixed cost in 2018 + profit ) / cm ratio in 2018

                               = ( 244200+165000) / 50%

                             =        818400