Colton's Paints makes and sells paint to home improvement stores. Colton's only plant can produce up to15 million cans of paint per year. Current annual production is 12 million cans. Fixed manufacturing, selling, and administrative costs total $10.8 million per year. The variable cost of making and selling each can of paint is $6.20. Stockholders expect a 15% annual return on the company's $34 million of assets.

Requirement 2. Assume that Colton is a price-taker and the current wholesale market price is $7.70 per can of paint. What is the target total of cost in producing and selling 12 million cans of paint? Given Colton's current total costs, will the company reach stockholders' profit goals?

Begin by calculating Colton's target total cost. Select the formula labels and enter the amounts. (Enter currency amounts in dollars, not in millions. Round all currency amounts to the nearest whole dollar.)

Revenue at market price		$92,400,000
Less:	Desired profit	5,100,000
Target total cost		$87,300,000

Given Colton's current total costs, will the company reach stockholders' profit goals? (Enter currency amounts in dollars, not in millions.)

Yes

, the company

will

reach stockholders' profit goals. There will be a(an)

? ????

excess

.

I need help finding the amount of excess.