D.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 current year, 2020: (Click the icon to view the data.) Read the requirements. Requirement 1. What is the projected net income for 2020? Using the equation method, select the basic formula used to compute the target net income for 2020. ÷ Data table Requirements 1. What is the projected net income for 2020? 2. What is the breakeven point in units for 2020? 3. 4. 5. 6. Mr. Brown has set the revenue target for 2021 at a level of $690,000 (or 23,000 bowls). He believes an additional marketing cost of $19,440 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 $19,440 is spent and the revenue target is met? What is the breakeven point in revenues for 2021 if the additional $19,440 is spent for advertising? If the additional $19,440 is spent, what are the required 2021 revenues for 2021 net income to equal 2020 net income? At a sales level of 23,000 units, what maximum amount can be spent on advertising if a 2021 net income of $75,666 is desired? Variable cost (per bowl) ☑ Direct materials Direct manufacturing labor Variable overhead (manufacturing, marketing, distribution and customer service) Total variable cost per bowl Fixed costs $ EA 3.75 7.50 2.55 $ 13.80 Manufacturing $ 12,000 Marketing, distribution, and customer service 214,800 Total fixed costs $ 226,800 Selling price $ 30.00 Expected sales, 19,500 units $ 585,000 Income tax rate 40% -

If the additional $16,500 is spent, what are the required 2018 revenues for 2018 net income to equal 2017 net income?

Nancy Tercek, the financial vice president, and Margaret Lilly, the controller, of Romine Manufacturing Company are reviewing the financial ratios of the company for the years 2020 and 2021. The financial vice president notes that the profit margin on sales ratio has increased from 6% to 12%, a hefty gain for the 2-year period. Tercek is in the process of issuing a media release that emphasizes the efficiency of Romine Manufacturing in controlling cost. Margaret Lilly knows that the difference in ratios is due primarily to an earlier company decision to reduce the estimates of warranty and bad debt expense for 2021. The controller, not sure of her supervisor's motives, hesitates to suggest to Tercek that the company's improvement is unrelated to efficiency in controlling cost. To complicate matters, the media release is scheduled in a few days. Instructions What, if any, is the ethical dilemma in this situation? Should Lilly, the controller, remain silent? Give reasons. What…

Golden Fish Company is a wholesale distributor of all kinds of fish in Ramallah. The Company services grocery stores in the Ramallah District. Small but steady growth in sales has been achieved by Golden Fish over the past few years, while fish prices have been increasing. The company is formulating its plans for the coming fiscal year. Presented next are the data used to project the current year’s after-tax net income of $128,250.   Average selling price per Kg                                                   $ 5.00                             Average variable costs per Kg                                                   Cost of fish                                                              $ 2.50                Shipping expenses                                                   $ 0.50                Total                                                                         $ 3.00              Annual fixed costs                Selling…

What is the breakeven point in units for 2017?

HiTech Electronics manufactures two new products,Tablets andTouch Screen Remotes, and sells them nationally to wholesalers andretailers. The HiTech management is very pleased with the company’sperformance for the current fiscal year. Projected sales throughDecember 31, 2022, indicate that 70,000Tablets and 140,000Remoteswill be sold this year. The projected earnings statement, which appearsbelow, shows that HiTech will exceed its earnings goal of 9 percent onsales after taxes.The Tablet business has been fairly stable for the last few years,and the company does not intend to change the Tablet price. However,the competition among manufacturers of Touch Screen Remotes has beenincreasing. HiTech’sRemotes have been very popular with consumers.In order to sustain this interest in theirRemotes and to meet the pricereductions expected from competitors, management has decided to reducethe wholesale price of its calculator from $22.50 to $20.00 per uniteffective January 1, 2023. At the same…

The president is considering a proposals prepared by members of his staff. For next year, the sales manager would to increase the unit selling price by 20%, increase the sales commission by 9%, and increase advertising by $100,00. Basaed on marketing studies, he is confident this would increase unit sales by one third. What profits would be under the sales manager's proposal? include both Total and Per Unit columns.

HiTech Electronics manufactures two new products, Tablets and Touch Screen Remotes, and sells them nationally to wholesalers and retailers. The HiTech management is very pleased with the company’s performance for the current fiscal year. Projected sales through December 31, 2022, indicate that 70,000 Tablets and 140,000 Remotes will be sold this year. The projected earnings statement, which appears below, shows that HiTech will exceed its earnings goal of 9 percent on sales after taxes. The Tablet business has been fairly stable for the last few years, and the company does not intend to change the Tablet price. However, the competition among manufacturers of Touch Screen Remotes has been increasing. HiTech’s Remotes have been very popular with consumers.In order to sustain this interest in their Remotes and to meet the price reductions expected from competitors, management has decided to reduce the wholesale price of its calculator from $22.50 to $20.00 per unit effective January 1,…

Universal Electric Company is a small, rapidly growing wholesaler of consumerelectrical products. The firm’s main product lines are small kitchen appliances andpower tools. Marcia Wilcox, Universal’s general manager of marketing, has recentlycompleted a sales forecast. She believes that the company’s sales during the first quarterof next year will increase by 10 per cent each month over the previous month’s sales.Wilcox then expects sales to remain constant for several months. Universal’s projectedbalance sheet as at 31 December this year is as follows:Cash $ 35 000Accounts receivable 270 000Marketable securities 15 000Inventory 154 000Buildings and equipment (net of acc. depr.) 626 000Total assets $1 100 000Accounts payable $176 400Long-term loan interest payable 12 500Property taxes payable 3 600Long-term loan payable (10% p.a.) 300 000Share capital 500 000Retained earnings 107 500Total liabilities and shareholders’ equity $1 100 000Jack Hanson, the assistant accountant, is now…

Universal Electric Company is a small, rapidly growing wholesaler of consumerelectrical products. The firm’s main product lines are small kitchen appliances andpower tools. Marcia Wilcox, Universal’s general manager of marketing, has recentlycompleted a sales forecast. She believes that the company’s sales during the first quarterof next year will increase by 10 per cent each month over the previous month’s sales.Wilcox then expects sales to remain constant for several months. Universal’s projectedbalance sheet as at 31 December this year is as follows:Cash $ 35 000Accounts receivable 270 000Marketable securities 15 000Inventory 154 000Buildings and equipment (net of acc. depr.) 626 000Total assets $1 100 000Accounts payable $176 400Long-term loan interest payable 12 500Property taxes payable 3 600Long-term loan payable (10% p.a.) 300 000Share capital 500 000Retained earnings 107 500Total liabilities and shareholders’ equity $1 100 000Jack Hanson, the assistant accountant, is now…