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can someone help me solve requirement 4 (step-by-step) please!! Question 3, E8-20A (simil... Part 5 of 5 HW Score: 27%, 2.7 of 10 points Points:
can someone help me solve requirement 4 (step-by-step) please!! Question 3, E8-20A (simil... Part 5 of 5 HW Score: 27%, 2.7 of 10 points Points: 0.7 of 1 Thatcher Paints makes and sells paint to home improvement stores. Thatcher's only plant can produce up to 19 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 $5.90. Stockholders expect a 15% annual return on the company's $43 million of assets. Read the requirements. ... Requirement 1. What is Thatcher's current total cost of making and selling 16 million cans of paint? What is the current cost per can of paint? Select the formula labels and enter the amounts to calculate Thatcher's current total cost and current cost per can of paint. (Enter currency amounts in dollars, not in millions. Enter unit values as whole numbers, not in millions. Round all currency amounts to the nearest whole dollar and round the cost per unit to the nearest cent, $X.XX.) Total variable costs $ 94,400,000 28,800,000 Plus: Fixed costs Current total costs $ 123,200,000 16,000,000 Divided by: Number of units Total cost per unit $ 7.70 Requirement 2. Assume that Thatcher is a price-taker and the current wholesale market price is $6.90 per can of paint. What is the target total of cost in producing and sellina 16 million cans Get More Help Clear All Final Check Question 3, E8-20A (simil... Part 5 of 5 HW Score: 27%, 2.7 of 10 points Points: 0.7 of 1 Thatcher Paints makes and sells paint to home improvement stores. Thatcher's only plant can produce up to 19 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 $5.90. Stockholders expect a 15% annual return on the company's $43 million of assets. Read the requirements. .... Requirement 2. Assume that Thatcher is a price-taker and the current wholesale market price is $6.90 per can of paint. What is the target total of cost in producing and selling 16 million cans of paint? Given Thatcher's current total costs, will the company reach stockholders' profit goals? Begin by calculating Thatcher's target total cost. Select the formula labels and enter the amounts. (Enter currency amounts in dollars, not th millions. Round all currency amounts to the nearest whole dollar.) Revenue at market price $ 110,400,000 6,450,000 Less: Desired profit $ Target total cost 103,950,000 Given Thatcher's current total costs, will the company reach stockholders' profit goals? (Enter currency amounts in dollars, not in millions.) No the will company not reach stockholders' profit goals. There will be acan) $ 19,250,000 shortfall Get More Help Clear All Final Check Es Question 3, E8-20A (simil... Part 5 of 5 HW Score: 27%, 2.7 of 10 points Points: 0.7 of 1 Thatcher Paints makes and sells paint to home improvement stores. Thatcher's only plant can produce up to 19 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 $5.90. Stockholders expect a 15% annual return on the company's $43 million of assets. Read the requirements. ... INO 19, ZUUUUU SHUF Lall company will be alan) Requirement 3. Continuing with Requirement 2, let's say that Thatcher has found ways to reduce its total fixed costs by $310,000. What is the target variable cost per can of paint? Select the formula labels and enter the amounts to calculate Thatcher's target variable cost per can of paint. (Enter currency amounts in dollars, ntat in millions. Enter unit values as whole numbers, not in millions. Round cost per unit amounts to the nearest cent, $X.XX.) Target total cost $ 103,950,000 Less: Fixed costs 28,490,000 Target total variable costs 75,460,000 Divided by: Number of units 16,000,000 Target variable cost per unit $ 4.72 Requirement 4. Suppose Thatcher plans to spend an additional $1.5 million on advertising to differentiate its product in order to increase sales volume to 17.5 million cans and become more Get More Help Clear All Final Check E Question 3, E8-20A (simil... Part 5 of 5 > HW Score: 27%, 2.7 of 10 points Points: 0.7 of 1 Thatcher Paints makes and sells paint to home improvement stores. Thatcher's only plant can produce up to 19 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 $5.90. Stockholders expect a 15% annual return on the company's $43 million of assets. ... Requirement 4. Suppose Thatcher plans to spend an additional $1.5 million on advertising to differentiate its product in order to increase sales volume to 17.5 million cans and become more of a price-setter. Assume that Thatcher did reduce its total fixed costs by $310,000 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 Thatcher'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.) Total variable costs 120750000 Total fixed costs 29990000 Current total costs 150740000 6450000 Plus: Desired profit Target revenue 157190000 17500000 Divided by: Number of units Cost-plus price per unit 8.98 Question 3, E8-20A (simil... Part 5 of 5 > HW Score: 27%, 2.7 of 10 points Points: 0.7 of 1 Requirements 1. What is Thatcher's current total cost of making and selling 16 million cans of paint? What is the current cost per can of paint? 2. Assume that Thatcher is a price-taker and the current wholesale market price is $6.90 per can of paint. What is the target total of cost in producing and selling 16 million cans of paint? Given Thatcher's current total costs, will the company reach stockholders' profit goals? 3. Continuing with Requirement 2, let's say that Thatcher has found ways to reduce its total fixed costs by $310,000. What is the target variable cost per can of paint? 4. Suppose Thatcher plans to spend an additional $1.5 million on advertising to differentiate its product in order to increase sales volume to 17.5 million cans and become more of a price-setter. Assume that Thatcher did reduce its total fixed costs by $310,000 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
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