ICO 1. Garden House's owners want to earn a 10% return on investment on the company's assets. What is Garden House's target full product cost? 2. Given Garden House's current costs, will its owners be able to achieve their target prof? 3. Assume Garden House has identified ways to cut its variable costs to $1.20 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? 4. Garden House started an aggressive advertising campaign strategy to differentiate its plants from those grown by other nurseries. Garden House does not expect volume to be affected, but it hopes to gain more control over pricing. If Garden House has to spend $125,000 this year to advertise and its variable costs continue to be $1.20 per unit, what will its cost-plus price be? Do you think Garden House will be able to sell its plants to garden centers at the cost-plus price? Why or why not? Garden House operates a commercial plant nursery where propagates plants for garden centers throughout the region Garden House has $5,100,000 in assets. Its yearly feed costs 1000,000, and the variable costs for the potting sollcontainer, label, seedling, and labor for each gallonske plant total $1.35 Garden House's volume is currently 470.000 units. Competitors offer the same plants at the same quality, to garden centers for $3.60 each Garden centers then mark them up to sell to the public for $9 to $12, depending on the type of plant Read the mus Requirement 1. Garden House's owners want to eam a 10% ntum on investment on the company's awes. What is Garden Hone's target M product cost? Less Target full product cost Requirement 2. Given Garden House's current costs, wil its owners be able to achieve their target profit? Begin by calculating Garden House's current full product cost Plus: Current full product cost be able to acheive is target profit Garden House's current ful product costs are its targetful product cost, therefore Garden House achieve its target pe Requirements. Assume Garden House has identified ways to cut the variabile comhs to $1.20 perunt. What is to new arpet faed cout? Will this decrease in variable costs wow the company to achieve a twynt pro Begin by calculating Garden House's new target fixed cost Less Target fonds Wilt decrease in variable costs allow the company to achieve is twget profit? Since the company's actual fixed costs are the new target and cost amount Garden House be able to achieve its target profit without having to take any other continues Requirement Garden House and aggressive advertising campaign tegy to differentiates plants from the grown by other reale House do not expect volume te afect, brat i hapete gain more control over prang won House has to end 12.00 Is year to add to Watie con cars 31.0 punk, www come you wise to sell its plants to garden centers the cool plus price? Why or why not? Begin by calculating the cost pus priceperunt. (Round your wer to the new cent) Full productos Plus Targareve Divided by Cost-plus price per il Do you think Garden House will be able to sell its plants to garden centers at the cow.plus price? Why or why not? the advertising campaign is efective Garden House w best to sell its plats te garden centers the price because is than the 5360 Garden Hotely charged
