CJ White Industries makes tennis balis. Its only plant can produce as many as 2,800,000 cans of tennis balls per year. Current production is 2,100,000 cans. Annual manufacturing, selling, and administrative fixed costs total $2.735,000. The variable cost of making and selling each can of tennis balls is $1.20. Stockholders expect a 10% annual return on the company's $3,100,000 of assets. Read the requirements Requirement 1. What is CJ White's current full product cost of making and selling 2.100.000 cans of tennis balls? What is the current full unit product cost of each can of tennis balls? (Round the per unit cost to the nearest cent) * Requirements Plus: Total full product costs Divided by the Full product cost per can 1. What is CJ White's current full product cost of making and selling 2,100,000 cans of tennis balls? What is the current full unit product cost of each can of tennis balls? 2. Assume CJ White is a price-taker, and the current market price is $1.58 per can of tennis balls (the price at which manufacturers sel to retailers). What is the target full product cost of producing and selling 2 100.000 cans of tennis balls? Given CJ White's current costs, will the company reach the stockholders' profit goals? 3. IfCJ White cannot change its fixed costs, what is the target variable cost per can of tennis balls? 4. Suppose CJ White could spend an extra $80,000 on advertising to differentiate its product so that it could be a price-setter. Assuming the original volume and costs, plus the $30,000 of new advertising costs, what cost-plus price will CJ White want to charge for a can of tennis balls? 5. Bishop, Inc. has just asked CJ White to supply the company with 200.000 cans of tennis balls at a special order price of $1.30 per can. Bishop wants CJ White to package the tennis balls under the Bishop label (CJ White will imprint the Bishop logo on each tennis ball and can). CJ White will have to spend $40,000 to change the packaging machinery. Assuming the original volume and costs, should CJ White accept this special order? (Assume CJ White will incur variable selling costs as well as variable manufacturing costs related to this order.) Print Done Choose from any list or enter any number in the input fields and then click 6 pertaining Clear All Check Answer Requirement 2. Assume SR Baker is a price-taker, and the current market price is cost of producing and selling 2,100,000 cans of tennis balls? Given SR Baker's cu First, calculate the target full product cost of producing and selling 2.100.000 cans Revenue at market price $ Less: Desired profit Target full product cost Given SR Baker's current costs, will the company reach the stockholders' profit go SR Baker's current total full product cost is higher than the target full product cos Requirement 3. If SR Baker cannot change its fixed costs, what is the target varia Target full product cost $ Less: Fixed costs Target total variable costs $ Divided by the number of cans Target variable cost per can $ Reruirement 4. Suppose SR Baker could spend an extra $80.000 on advertising to differentiate its product $80,000 of new advertising costs, what cost-plus price wil SR Baker want to charge for a can of tennis balls Current total costs Plus Additional cost of advertising Plus: Desired profit Target revenue $ Divided by the number of cans $ Cost-plus price per can Requirement 5. Eby, Inc. has just asked SR Baker to supply the company with 200.000 cans of tennis balls balls under the Eby label (SR Baker will imprint the Eby logo on each tennis ball and can). SR Baker will have and costs should SR Baker accept this special order? Assume SR Baker will incur variable selling costs as First, calculate the income or loss on the special order. (Use parentheses or a minus sign for a loss.) Revenue from special order S Less: Variable costs of special order Contribution margin from special order $ Less: Additional fixed costs of special order Operating income or loss provided by special order SR Baker should accept the special order because it will increase operating income