Brodies industries makes tenni ballis. Brodie's only piant can prodisee up to 2 b million cans of balis per year. Current production is two militon cans. Annuat manufacturing selling, and administrative flxed costs total $700,000. The variable cost of making and selling each can of balls is $1. Stockholders expect a 12% annual return on the company's $3 million of assetis. Requirements 1. What is Brodie's current total cost of making and selling two million cans of tennis balls? What is the total cost per unit of making and selling each can of balls? (4pts) 2. Assume that Brodies Industries is a price-taker, and the current market price is $1.45 per can of balls (this is the price at which manufacturers sell to retailers). What is the target total cost of producing and selling two million cans of balls? Given Brodies Industries' current total costs, will the company reach stockholders' profit goals? (2pts) 3. Continuing with Requirement 2, if Brodies Industries cannot reduce its fixed costs, what is the target variable cost per can of balls? (7pts) 4. Suppose Brodies Industries could spend an extra $100,000 on advertising to differentiate its product so that it could be more of a price-setter. Assuming the original volume and costs plus the $100,000 of new advertising costs, what cost-plus price will Brodies Industries want to charge for a can of balls? (7pts) TOTAL (40pts)