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Green Thumb operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Green Thumb has $4.9 million in assets. Its
Green Thumb operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Green Thumb has $4.9 million in assets. Its yoarly fixed costs are $682,000, and the variable costs for the potting soil container, label, seedling, and labor for each gallon-sized plant total $1.30. Green Thumb's volume is currently 480,000 units. Competitors offer the same quality plants to garden centers for $4.00 each Garden centers then mark them up to sell to the public for S9 to $11, depending on the type of plant. Read the requirements CHROME Requirement 1. Green Thumb owners want to earn a 14% return on the company's assets. What is GreenThumb's target full cost? Calculate the target full cost for Green Thumb Select the formula labels and enter the amounts. Revenue at current market price $ $ Requirements 1.920,000 686,000 Less: Desired profit $ 1.234.000 Target full cost Requirement 2. Given GreenThumb's current costs, will its owners be able to achieve their target profit? Show your analysis. Calculate Green Thumb's current total full cost. Select the formula labels and enter the amounts Current fixed costs 1. GreenThumb owners want to eam a 14% return on the company's assets. What is Green Thumb's target full cost? 2. Given Green Thumb's current costs, will its owners be able to achieve their target profit? Show your analysis 3. Assume that Green Thumb has identified ways to cut its variable costs to $1.15 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? Show your analysis. 4. GreenThumb started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Green Thumb doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Green Thumb has to spend $110,400 this year to advertise and its variable costs continue to be $1.15 per unit, what will its cost-plus price be? Do you think Green Thumb will be able to sell its plants to garden centers at the cost-plus price? Why or why not? Current variable costs Total full cost Print Done Print Done Choose from any list or enter any number in the input fields and then click Check Answer . Video Help Me Solve This Get More Help Clear All Check
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