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have most of it done confused with the last part Plants Galore operates a commercial plant nursery where it propagates plants for garden centers throughout

have most of it done confused with the last part
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Plants Galore operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Plants Galore has $4.9 million in assets. Its yearly 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. Plants Galore'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 $9 to $11, depending on the type of plant. Read the requirements Requirement 1. Plants Galore owners want to earn a 14% return on the company's assets. What is Plants Galore's target full cost? Calculate the target full cost for Plants Galore. Select the formula labels and enter the amounts. Revenue at current market price $ 1,920,000 Less: Desired profit 686,000 Target full cost 1,234,000 Requirement 2. Given Plants Galore's current costs, will its owners be able to achieve their target profit? Show your analysis. Calculate Plants Galore's current total full cost. Select the formula labels and enter the amounts, Current variable costs 624,000 Current fixed costs 682,000 Total full cost $ $ 1,306,000 Plants Galore's current total full costs of $ 1,306,000 is higher than will not its target full cost. Plants Galore meet the owner's profit expectations. Requirement 3. Assume that Plants Galore 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, Target full cost $ 1,234,000 Less: Reduced level of variable costs 552,000 New target foxed costs 682,000 $ $ Plants Galore operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Plants Galore has $4.9 million in assets. Its yearly fixed costs are $682,000, and the variable costs for the potting soil, container, label, seedling, and labor for each galon-sized plant total $1.30. Plants Galore'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 $9 to $11, depending on the type of plant. Read the requirements Requirement 3. Assume that Plants Galore has identified ways to cut its variable costs to $1.15 per unit. What is its new target fixed cost? Wi this decrease in variable costs allow the company to achieve its target profit? Show your analysis. Target full cost $ 1,234,000 Less: Reduced level of variable costs 552,000 New target fixed costs 682,000 The new target fixed cost is the same as actual fixed costs By reducing variable costs to $1.15, Plants Galore will be able to achieve its target profit without having to take any other cost cutting measures Requirement 4. Plants Galore started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurserios. Plants Galore doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Plants Galore 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 bo? Do you think Plants Galore will be able to sell its plants to garden centers at the cost-plus price? Why or why not? Determine its cost-plus price. (Round the cost-plus price to the nearest cent.) Current fixed costs Plus: Additional fixed costs Total variable costs Total full costs Plus: Desired profit Target revenue Divided by Number of units Cost-plus price per unit Bu et tar bra 1. Plants Galore owners want to earn a 14% return on the company's assets. What is Plants Galore's target full cost? 2. Given Plants Galore's current costs, will its owners be able to achieve their target profit? Show your analysis. 3. Assume that Plants Galore 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. Plants Galore starter an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries, Plants Galore doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Plants Galore 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 Plants Galore will be able to sell its plants to garden centers at the cost-plus price? Why or why not? nel th le e il Fixo Add

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