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Green House operates a commercial plant nursery where it propagates plants for garden centers throughout the region Green House has $5.25 million in assets.

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Green House operates a commercial plant nursery where it propagates plants for garden centers throughout the region Green House has $5.25 million in assets. Its yearly fixed costs are $668,500, and the variable costs for the potting soil, container, label, seeding, and labor for each gallon-sized plant total $1.20 Green House's volume is currently 490,000 units Competidors offer the same quality plants to garden centers for $3 70 each Garden centers then mark them up to sell to the public for $8 to $10, depending on the type of plant Read the requirements Requirement 1. Green House owners want to cam a 12% return on the company's assets. What is,Green House's target full cost? Calculate the target full cost for Green House Select the formula labels and enter the amounts Less Target to Requirements 1. Geoen House owners want to eam a 12% return on the company's assets. What is Green House's target full cost? 2. Given Green House's current costs, will its owners be able to achieve their target profit? Show your analysis 3. Assume that Green House has identified ways to cut its vanable costs to $1.05 per und What ises new target fixed cost? Wit this decrease in variable costs allow the company to achieve its target profit? Show your analysis 4. Green House started an aggressive advertning campaign strategy to differentiates plants from those grown by other nurseries Green House doesn't expect volume to be affected, but it hopes to gain more control over pricing if Green House has to spend $53,900 hs year to advertise and its variable costs continue to be $1.05 per unit, what will its cost plus price be? Do you think Green House will be able to sell its planes to garden centors at the cost-plus price? Why or why not?

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