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Score: 0 of 3 pts 3 of 10 (0 complete) HW Score: 0%, 0 of 30 pts Question Help E8-18A (similar to) Thatcher Paints makes and sells paint to home improvement stores. Thatcher's only plant can produce up to 12 million cans of paint per year. Current annual production is 7 million cans. Fixed manufacturing, selling, and administrative costs total $11.9 million per year. The variable cost of making and selling each can of paint is $6.30. Stockholders expect a 10% annual return on the company's $44 million of assets. Read the requirements. Requirement 1. What is Thatcher's current total cost of making and selling 7 million cans of paint? What is the current cost per can of paint? Select the formula labels and enter the amounts to calculate Thatcher's current total cost and current cost per can of paint. (Enter currency am Round all currency amounts to the nearest whole dollar and round the cost per unit to the nearest cent, $X.XX.) Requirements Plus: Divided by: Total cost per unit 1. What is Thatcher's current total cost of making and selling 7 million cans of paint? What is the current cost per can of paint? 2. Assume that Thatcher is a price-taker and the current wholesale market price is $7.30 per can of paint. What is the target total of cost in producing and selling 7 million cans of paint? Given Thatcher's current total costs, will the company reach stockholders' profit goals? 3. Continuing with Requirement 2, let's say that Thatcher has found ways to reduce its total fixed costs by $240,000. What is the target variable cost per can of paint? 4. Suppose Thatcher plans to spend an additional $2.2 million on advertising to differentiate its product in order to increase sales volume to 8.5 million cans and become more of a price-setter. Assume that Thatcher did reduce its total fixed costs by $240.000 as stated in Requirement 3 but could not find ways to save on its variable costs. What is the cost-plus price for a can of paint under these conditions? Choose from any list or enter any number in the input fields and then click Check Answer. A parts Tremaining Clear All