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Beckford Paints makes and sells paint to home improvement stores. Beckford's only plant can produce up to 9 million care of paint per year.
Beckford Paints makes and sells paint to home improvement stores. Beckford's only plant can produce up to 9 million care of paint per year. Current annual production is 7 million cans. Fixed manufacturing, selling, and administrative costs total $10.5 million per year. The variable cost of making and selling each can of paint is $6.10. Stockholders expect a 20% annual return on the company's $41 million of assets Read the quirement Requirement 1. What is Beckford's cument total cost of making and selling 7 milion cana of paint? What is the current cost per can of pain? Select the formula labels and enter the amounts to calculate Beckford's current total cost and current cost per can of paint (Enter currency amounts in dollars, not in millions Enter unt values as whole numbers, not in milions. Round all currency amounts to the nearest whole dollar and round the cost per unt to the nearest cent, $XXX) Pu Divided by: Total cost per unt Calculator Requirements 1. What is Beckford's current total cost of making and selling 7 million cans of paint? What is the cument cost per can of pain? 2. Assume that Beckford is a price-taker and the current wholesale market price is $7.60 per can of paint What is the target total of cost in producing and selling 7 mition cans of paint? Given Beckford's current total costs, will the company reach stockholders' profit goals? 3. Continuing with Requirement 2, let's say that Beckford has found ways to reduce its total fixed costs by $240.000. What is the target variable cost per 4. Suppose Beckford plans to spend an additional $2.1 milion on advertising to differentiate its product in order to increase sales volume to 9 million can and become more of a price-setter. Assume that Beckidord did reduce its total fixed costs by $240,000 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? Clear all Check answer
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