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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

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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 faxed costs are $650,000, and the variable costs for the potting sol, container, label, seeding and labor for each galon-size plant total 51.90. Green House's volume is currently 500.000 units. Competitors offer the same plants at the same quality, to garden centers for $1.25 each Garden Centers then mark thorn up to sell to the public for 59 to 512. depending on the type of plant Read the requirements Requirement 1. Green House owners want to eam on 11% rotum on investment on the company's What is Green House's target tul product cost? Loss Targetful productos Requirement 2. Given Green House's current costs, wil its owners be able to achieve their target profit? Begin by calculating Green House's current full product cost Plus Current tal product cost Green House's current product costs are is target full product cost, therefore Green House be able to achevets target profit Requirements. Assume Green House has identified ways to cut ts variable costs to $1.75 perunt. What is its new target fed cost? Will this decrease in variable costs slow the company to achieve is target groft? Begin by calculating Green House's new targetfud cost Target fred cost Choose from a list of enter any number in the input fields and then continue to the next question Green House operates a commercial plant nursery where i propagates plants for garden centers Toughout the region. Green House has $5,000,000 in assets. Its yearly fed costs are $650,000, and the variable costs for the porting soll container, label, soeding, and labor for each galon-size plant total $1.90. Green House's volume is currently 500,000 units. Competitors offer the same plants at the same quality, to garden centers for 54.25 each Garden Centers then mark them up to sell to the public for $0 to $12, depending on the type of plant Read the requirements Target foed om win this decrease in variable costs allow the company to achieve to trpel profe? Since the company's actual food costs are the new target fixed 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 Green House does not expect volume to be affected, but it hopes to gain more control over pricing Green House has to spend $135,000 this year to advertise and its variable costs continue to be $1.75 per unit, what will cont plus price be? Do you think Green House will be able to sell its plans to garden centers at the cost.plus price? Why or why not? Begin by calculating the cost hus price per unit (Round your answer to the nearest cant) Plus Full productos Ps Target revenue Divided by Cost-plus price per unit Do you think Green House will be able to sell its plants to garden centers cool plus price? Why or why not? the advertising campaign is affective Green House be able to sell its plants to garden centers at this price because it is than the 54.25 Pa Green House previously charged Choose from any lot or enter any number in the input fields and then continue to the next Question niey 0 Requirements any sing ar met Je to ir ail 1. Green House's owners want to earn an 11% return on investment on the company's assets. What is Green House's target full product cost? 2. Given Green House's current costs, will its owners be able to achieve their target profit? 3. Assume Green House has identified ways to cut its variable costs to $1.75 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? 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 $135,000 this year to advertise and its variable costs continue to be $1.75 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? Print Done

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