ALLI 2502-TUU PICIPes Ulanger ALL Save Homework: Lab: Using Cash Flow Methods to Make Investment De Score: 0 of 100 pts 7 of 1 (1 complete) X COMP26-1 (similar to) HW Score: 0%, 0 of 100 pts Question Help Donnovan Daisy, majority stockholder and president of Daisy, Inc., is working with his top managers on future plans for the company. As the company's managerial accountant, you've been asked to analyze the following situations and make recommendations to the management team. Read the requirements Requirement 1. Division A of Daisy, Inc. has $4,800,000 in assets. Its yearly fixed costs are $687.500, and the variable costs of its product line are $1.90 per unit. The division's volume is currently 450,000 units. Competitors offer a similar product, at the same quality, to retailers for $4 25 each. Daisy's management team wants to earn a 8% return on investment on the division's assets 1a. What is Division A's target full product cost? Revenue at current market price 855,000 855,000 Less: Desired profit Target full product cost Choose from any list or enter any number in the input fields and then click Check Answer 22parts Check Answer Clear All Score: 0 of 100 pts of 1 (1 complete) HW Score: 0%, X COMP26-1 (sim 0 Requirements Questio Donnovan Daisy, majority stock analyze the following situations anagerial accountant, you've bee Read the requirements Requirement 1. Division A of D 450,000 units. Competitors offe per unit. The division's volume i investment on the division's as 1a. What is Division A's target fu Revenue at current market prid Less Desired profit Target full product cost 1. Division A of Daisy, Inc. has $4,800,000 in assets. Its yearly fixed costs are $687,500, and the variable costs of its product line are $1.90 per unit. The division's volume is currently 450,000 units. Competitors offer a similar product, at the same quality, to retailers for $4,25 each. Daisy's management team wants to earn a 8% return on investment on the division's assets. a. What is Division A's target full product cost? b. Given the division's current costs, will Division A be able to achieve its target profit? C. Assume Division A has identified ways to cut its variable costs to $1.75 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the division to achieve its target profit? d. Division A is considering an aggressive advertising campaign strategy to differentiate its product from its competitors. The division does not expect volume to be affected, but it hopes to gain more control over pricing. If Division A has to spend $145,000 next year to advertise and its variable costs continue to be $1.75 per unit, what will its cost-plus price be? Do you think Division A will be able to sell its product at the cost-plus price? Why or why not? 2. The division manager of Division B received the following operating income data for the past year: (Click the icon to view the Division B operating income data.) The manager of the division is surprised that the T205 product line is not profitable. The division accountant estimates that dropping the T205 product line will decrease fixed cost of goods sold by $79,000 and decrease fixed selling and administrative expenses by $19,000 a. Prepare a differential analysis to show whether Division B should drop the T205 product line. b. What is your recommendation to the manager of Division B? 3. Division C also produces two product lines. Because the division can sell all of the product it can produce. Daisy is expanding the plant and needs to decide which product line to emphasize. To make hoose from any list or enter Print Done All Ched