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Green House operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Green House has $5,000,000 in assets Its yearly
Green House operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Green House has $5,000,000 in assets Its yearly fixed costs are $625.000, and the variable costs for the potting soil, container, label, seedling, and labor for each gallon-size plant total $170. Green House's volume is currently 480,000 units Competitors offer the same plants, at the same quality, to garden centers for $400 each Garden centers then mark them up to sell to the public for 59 to $12, depending on the type of plant. Read the requirements Requirement 1. Green House's owners want to earn a 10% return on investment on the company's assets. What is Green House's target full product cost? Less Target full product cost Requirement 2. Given Green House's current costs, will its owners be able to achieve their target profit? Begin by calculating Green House's current full product cost. Plus Current full product cost Green House's current full product costs are Its target full product cost, therefore Green House be able to acheive its target profit Requirement 3. Assume Green House has identified ways to cut its variable costs to $155 per unit What is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? Begin by calculating Green House's new target foed cost Less Target fixed cost Will this decrease in variable costs allow the company to achieve its target profit? Since the company's actual fixed costs are the new target fced cost amount Green House be able to achieve its target profit without having to take any other cost cutting measures Requirement 4. Green House started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries Gran Hanternert olime in ha afferter hun hones in Aain mineral warnir en hautnsnand 155 n the ear to Read the requirements. Requirement 1. Green House's owners want to earn a 10% return on investment on the con Current fixed costs Current variable costs | Desired profit Revenue at current market price costs, will its owners be able to achieve their ta product cost Green House operates a commercial plant nursery where it prop Its yearly fixed costs are $625,000, and the variable costs for the Green House's volume is currently 480,000 units. Competitors of mark them up to sell to the public for $9 to $12, depending on the Read the requirements. Requirement 1. Green House's owners want to earn a 10% return Less: Target full Current fixed costs Requirem Current variable costs Begin by c Desired profit Revenue at current market price ts owners ist. Plus: Current full product cost Green House's current full product costs are its target fu Requirement 3. Assume Green House has identified ways to cut its va variable costs allow the company to achieve its target profit? Begin by calculating Green House's new target fixed cost. yearly fixed costs are reen House's volume is currently 480,000 units. Competitors mark them up to sell to the public for $9 to $12, depending on Read the requirements Requirement 1. Green House's owners want to earn a 10% ret Less: Target full product cost Requirement 2. Given Green House's current costs, will its own Begin by calculating Green House's current full product cost. Current fixed costs Current variable costs Desired profit its targe Revenue at current market price kequirement 3. Assume Green House nas identified ways to cut it variable costs allow the company to achieve its target profit? Begin by calculating Green House's new target fixed cost. Less Requirement 1. Green House's owners want to earn a 10 Less: Target full product cost Requirement 2. Given Green House's current costs, will its Begin by calculating Green House's current full product cost Plus: ho Current fu Current fixed costs Green Hou Current variable costs Desired profit Requirem variable cc Revenue at current market price ts s to it? Begin by calculating Green House's new target fixed cost. Less: Target fixed cost Will this decrease in variable ad the requirements. equirement 1. Green House's owners want to earn a 10% return on Less: Target full product cost Requirement 2. Given Green House's current costs, will its owners be Begin by calculating Green House's current full product cost. Plus: Current full product cost Green House's current full product costs are its target full thing Requirement 3. Assume Green House has i variable costs allow the company to achieve i its val equal to Begin by calculating Green House's new targ higher than lower than Less Target fixed cost Will this decrease in variable costs allow the company to achieve its targe Since the company's actual fiya Current full product cost be able to acheive its target profit id cost? Will this decrease in Green House's current full product costs are its target full product cost, therefore Green House Requirement 3. Assume Green House has identified ways to cut its variable costs to $1.55 per unit. What is i variable costs allow the company to achieve its target profit? Begin by calculating Green House's new target fixed cost. will will not Less Current full product cost Green House's current full product costs are its target fu Requirement 3. Assume Green House has identified ways to cut its va variable costs allow the company to achieve its target profit? Begin by calculating Green House's new target fixed cost Current fixed costs Current full product cost Desired profit mpany to achieve its targe Revenue at current market price the new Target full product cost asures. Variable costs Requirement 4. Green House started an aggressive advertising campaign Green House does not expect volume to be affected, but it hopes to gain me advertise and its variable costs continue to be $1.55 per unit, what will its co centers at the cost-plus price? Why or why not? Begin by calculating the cost-plus price per unit. (Round your answer to the Choose from any list or enter any number in the input fields and then cont Green House's current full product costs are Vits targ Requirement 3. Assume Green House has identified ways to cut i variable costs allow the company to achieve its target profit? Begin by calculating Green House's new target fixed cost. Less the Target fixe Current fixed costs Will this de Current full product cost achieve its Desired profit Since the without ha Revenue at current market price Target full product cost Requirem Variable costs ertising camp Green Hot t hopes to go advertise and its variable costs continue to be $1.55 per unit, what will centers at the cost-plus price? Why or why not? Begin by calculating the cost-plus price per unit. (Round your answer to umber in the input fields and the be able to acheive its tar Requirement 3. Assume Green House has identified ways to cut its variable costs to $1.55 per unit. What is its new target fixed cost? Will this d variable costs allow the company to achieve its target profit? Begin by calculating Green House's new target fixed cost. Less Target fixed cost Will this decrease in variable costs allow the company to achieve its target profit? be able to achieve it the new target fixed cost amount, Green House Since the company's actual fixed costs are without having to take any other cost cutting Requirement 4. Green House started an ag Green House does not expect volume to be ahlo rasts continue to greater than n strategy to differentiate its plants from those grown by other nurseries more control over pricing. If Green House has to spend $155,000 this ye cost-plus price be? Do you think Green House will be able to sell its plas less than or equal to able costs allow the company to achieve its target profit? be able to achieve will tual fixed costs are the new target fixed cost amount, Green House any other cost cutting measures. House started an aggressive advertising campaign strategy to differentiate its plants from tt t expect volume to be affected, but it hopes to gain more control over pricing. If Green House ble costs continue to be $1.55 per unit, what will its cost-plus price be? Do you think Green H is price? Why or why not? nica ner unit. (Round your answer to the nearest cent) her nurserie 55,000 this to sell its pl will not Requirement 4. Green House started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Green House does not expect volume to be affected, but it hopes to gain more control over pricing. If Green House has to spend $155,000 this year to advertise and its variable costs continue to be $1.55 per unit, what will its cost-plus price be? Do you think Green House will be able to sell its plants to garden centers at the cost-plus price? Why or why not? Begin by calculating the cost-plus price per unit. (Round your answer to the nearest cent.) Plus Full product cost Plus Target revenue Divided by Cost-plus price per unit Do you think Green House will be able to sell its plants to garden centers at the cost-plus price? Why or why not? be able to sell its plants to garden centers at this price because it is If the advertising campaign is effective, Green House than the $4.00 that Green House previously charged this decrease in variable costs allow the company to Since the company's actual fixed costs are without having to take any other cost cutting measures. Requirement 4. Green House started an aggressive adv Green House does not expect volume to be affected, but advertise and its variable costs continue to be $1.55 per centers at the cost-plus price? Why or why not? Begin by calculating the cost-plus price per unit. (Round ye Current variable costs Desired profit Fixed costs Number of units Revenue at current market price Cost-plus price per unit Do you think Green House will be able to sell its plants to gard If the advertising campaign is effective, Green House than the $4.00 that Green House previously charged. from any list or enter any number in the input fields a Target fixed cost Will this decrease in variable costs allow the company to achieve its Since the company's actual fixed costs are without having to take any other cost cutting measures. Requirement 4. Green House started an aggressive advertising cam Green House does not expect volume to be affected, but it hopes to advertise and its variable costs continue to be $1.55 per unit, what wil centers at the cost-plus price? Why or why not? Begin by calculating the cost-plus price per unit. (Round your answer to Plus: Full products Current variable costs Plus: Desired profit Target revenu Fixed costs Divided by: Number of units Cost-plus prie Revenue at current market price Do you think Green House will be able to sell its plants to garden centers a If the advertising campaign is effective, Green House than the $4.00 that Green House previously charged. be able to s Choose from any list or enter any number in the input fields and then cor HO Do you think Green House will be able to sell its plants to garden centers at the cost-plus price? Why or why not? If the advertising campaign is effective, Green House be able to sell its plants to garden centers at this price because it is than the $4.00 that Green House previously charged should en continue to the next question. Choose from any list or enter any number in the inp will not Full product cost Plus: Target revenue Divided by: Cost-plus price per unit Do you think Green House will be able to sell its plants to garden centers at the cost-plus price? Why or why not? If the advertising campaign is effective, Green House be able to sell its plants to garden centers at this price because it is than the $4.00 that Green House previously charged. not significantly higher not significantly lower significantly higher significantly lower Choose from any list or enter any number in the input fields and then continue to the next
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