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Beckam Paints makes and sells paint to home improvement stores. Beckam's only plant can produce up to 18 million cans of paint per year. Current
Beckam Paints makes and sells paint to home improvement stores. Beckam's only plant can produce up to 18 million cans of paint per year. Current annual production is 16 million cans. Fixed manufacturing, selling, and administrative costs total $28.8 million per year. The variable cost of making and selling each can of paint is $6.30. Stockholders expect a 10% annual return on the company's $37 million of assets. Read the requirements. Requirement 4. Suppose Beckam plans to spend an additional $2.3 million on advertising to differentiate its product in order to increase sales volume to 16.5 million ' cans and become more of a price-setter. Assume that Beckam did reduce its total fixed costs by $340,000 as stated in Requirement 3 but could not find ways to save on its variable costs. What is the cost-plus price for a can of paint under these conditions? Select the formula labels and enter the amounts to calculate Beckam's cost-plus price for a can of paint under these conditions. (Enter currency amounts in dollars, not in millions. Round cost per unit amounts to the nearest cent, $X.XX.)
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