inger Industries makes tennis balls. Linger's only plant can produce up to 2.5 million cans of balls per year. Current production is two million cans. Annual manufacturing, selling, and administrative fixed costs total $700,000. The variable cost of making and selling each can of balls is $1. Stockholders expect a 12% annual return on the company's $3 million of assets. Read the requirements. Requirement 1. What is Linger Industries' current total cost of making and selling two million cans of tennis balls? What is the current cost per unit of each can of tennis balls? (Enter the current cost per can to the nearest cent.) Plus: Current total costs Divided by: Current cost per can Requirement 2. Assume that Linger Industries is a price-taker and the current market price is $1.45 per can of balls (this is the price at which manufacturers sell to retailers). What is the target total cost of producing and selling two million cans of balls? Given Linger Industries' current total costs, will the company reach stockholders' profit goals? Calculate the target total cost of producing and selling two million cans of balls. Choose from any list or enter any number in the input fields and then continue to the next question. esc F1 F2 2 Q W A S 20 F3 $ 44 #3 m 000 F4 F5 A F10 905 % & * 6 7 8 9 0 B R T Y U O P D F G H J K L F12 word, ent xample, yo Linger Industries makes tennis balls. Linger's only plant can produce up to 2.5 million cans of balls per year. Current production is two million cans. Annual manufacturing, selling, and administrative fixed costs total $700,000. The variable cost of making and selling each can of balls is $1. Stockholders expect a 12% annual return on the company's $3 million of assets. Read the requirements. Requirement 2. Assume that Linger Industries is a price-taker and the current market price is $1.45 per can of balls (this is the price at which manufacturers sell to retailers). What is the target total cost of producing and selling two million cans of balls? Given Linger Industries' current total costs, will the company reach stockholders' profit goals? Calculate the tamat total cost of producing and selling two million cans of balls. Less: Target total cost Given Linger Industries' current total costs, will the company reach stockholders' profit goals? than the target total costs. If Linger Industries can't Vit be able to meet stockholders' profit expectations. I Requirement 3. If Linger Industries cannot reduce its fixed costs, what is the target variable cost per can of balls? (Round the target variable cost per unit to the nearest cent.) Linger Industries' current total costs are Choose from any list or enter any number in the input fields and then continue to the next question. 15 esc 80 FI F2 F3 A Q 2 # 3 54 $ DOO DOO F4 % 5 5 a> ^ F6 W 81 . & * 8 * 80 6 7 W E R T Y U S D F G H - 9 O F10 F11 0 A J K L P + 11 F12 word, ent xample, yo del Linger Industries makes tennis balls. Linger's only plant can produce up to 2.5 million cans of balls per year. Current production is two million cans. Annual manufacturing, selling, and administrative fixed costs total $700,000. The variable cost of making and selling each can of balls is $1. Stockholders expect a 12% annual return on the company's $3 million of assets. Read the requirements. Given Linger Industries' current total costs, will the company reach stockholders' profit goals? Linger Industries' current total costs are than the target total costs. If Linger Industries can't it be able to meet stockholders' profit expectations. Requirement 3. If Linger Industries cannot reduce its fixed costs, what is the target variable cost per can of balls? (Round the target variable cost per unit to the nearest cent.) Less: Target total variable costs Divided by: Target variable cost per unit Requirement 4. Suppose Linger Industries could spend an extra $100,000 on advertising to differentiate its product so that it could be more of a price-setter. Assuming the original volume and costs plus the $100,000 of new advertising costs, what cost-plus price will Linger Industries want to charge for a can of balls? (Enter the cost-plus price per unit to the nearest cent.) Choose from any list or enter any number in the input fields and then continue to the next question. esc FI A @ 2 15 W 81 80 600 F4 F5 F2 F3 #3 $ 4 95 % & * 6 7 N 8 Q W E R T Y U S - F9 F10 9 0 D F G H J K L F11 B + P { ' F12 word, ente xample, yo 1 dele inger Industries makes tennis balls. Linger's only plant can produce up to 2.5 million cans of balls per year. Current production is two million cans. Annual manufacturing, selling, and administrative fixed costs total 700,000. The variable cost of making and selling each can of balls is $1. Stockholders expect a 12% annual return on the company's $3 million of assets. Read the requirements. Requirement 4. Suppose Linger Industries could spend an extra $100,000 on advertising to differentiate its product so that it could be more of a price-setter. Assuming the original volume and costs plus the $100,000 of new advertising costs, what cost-plus price will Linger Industries want to charge for a can of balls? (Enter the cost-plus price per unit to the nearest cent.) Plus: Plus: Target revenue Divided by: Cost-plus price per unit Requirement 5. Nike has just asked Linger Industries to supply 400,000 cans of balls at a special order price of $1.20 per can. Nike wants Linger Industries to package the balls under the Nike label (Linger will imprint the Nike logo on each ball and can). As a result, Linger Industries will have to spend $10,000 to change the packaging machinery. Assuming the original volume and costs, should Linger Industries accept this special order? (Assume that Linger will incur variable selling costs as well as variable manufacturing costs related to this order.) Calculate the operating income provided by the special order. Choose from any list or enter any number in the input fields and then continue to the next question. ? esc F 2 Q W A S F2 15 W 11 F7 FB F3 600 F4 54 #3 * $ 95 % ^ & 6 7 8 9 0 E R D T Y U F G H F10 FIL F12 word, ent xample, yo dele P B J K L Linger Industries makes tennis balls. Linger's only plant can produce up to 2.5 million cans of balls per year. Current production is two million cans. Annual manufacturing, selling, and administrative fixed costs total $700,000. The variable cost of making and selling each can of balls is $1. Stockholders expect a 12% annual return on the company's $3 million of assets. Read the requirements. Requirement 5. Nike has just asked Linger Industries to supply 400,000 cans of balls at a special order price of $1.20 per can. Nike wants Linger Industries to package the balls under the Nike label (Linger will imprint the Nike logo on each ball and can). As a result, Linger Industries will have to spend $10,000 to change the packaging machinery. Assuming the original volume and costs, should Linger Industries accept this special order? (Assume that Linger will incur variable selling costs as well as variable manufacturin costs related to this order.) Calculate the opting income provided by the special order. Less: Contribution margin from special order Less: Operating income provided by special order Should Linger Industries accept this special order? Linger Industries should the special order because it will operating income. Choose from any list or enter any number in the input fields and then continue to the next question. esc 80 F1 F2 F3 A 2 NO # 3 $ 4 DOD 000 F4 % 25 F5 6 71 87 & 11 F7 Q W E R T Y U S * 8 82 - 61 O 0 F10 F11 F12 D F G H J K L P word, ent xample, yo delet